In view of rising farm input costs, the Agriculture Ministry has proposed a Rs 170 per quintal increase in the minimum support price (MSP) of paddy at Rs 1,250 per quintal for the 2012-13 crop year (July-June).
According to sources, the ministry has circulated a Cabinet note among various ministries recommending MSP of Rs 1,250 per quintal for common variety paddy and Rs 1,280 per quintal for 'A' grade variety of paddy for 2012-13 crop year.
For the 2011-12 crop year, paddy MSP of common and 'A' grade varieties were fixed at Rs 1080 per quintal and Rs 1110 per quintal, respectively.
Paddy is grown in both Kharif and Rabi season. The Kharif sowing begins with the start of the south west monsoon in June and harvest starts from October.
Sources said the Agriculture Ministry's proposal on support price of Kharif crops for 2012-13 crop year are in line with recommendations made by the Commission for Agriculture Costs and Prices ( CACP).
Besides paddy, the ministry has recommended Rs 800-1,000 per quintal increase in support price of pulses for 2012-13. It has suggested Rs 4,500 per quintal for moong, Rs 4,300 per quintal for urad and Rs 4,000 per quintal for tur this year.
Last year, support price of moong, urad and tur stood at Rs 3,500 a quintal, Rs 3,300 a quintal and Rs 3,200 a quintal, respectively.
"Pulses require special attention as they are in short supply. The substantial increase in MSP has been suggested to raise domestic production and reduce imports," sources said.
To boost oilseeds production, the ministry has proposed up to 37 per cent hike in MSP. It has suggested support price of Rs 3,700 per quintal each for groundnut and sunflower seed and Rs 2,200 per quintal for soyabean for 2012-13.
In 2011-12, MSP of groundnut and sunflower seed was fixed at Rs 2,700-2,800 per quintal. Whereas soyabean MSP was Rs 1,650 per quintal.
With regard to cotton, the ministry has recommended Rs 3,600-3,900 per quintal for 2012-13, as against Rs 2,800-3,300 per quintal last year.
With substantial increase in support price, the Agriculture Ministry aims to achieve a new record in foodgrains production. In 2011-12 crop year, the country is estimated to have harvested bumper 252.56 million tonnes of foodgrains.