Cabinet approves MSP hike for Cotton, pulses other Kharif Crops

New Delhi

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has given its approval for Minimum Support Prices (MSPs) for Kharif Crops of 2016-17 season.

The prices would be effective from 1.10.2016. The higher MSPs would increase investment and production through assured remunerative prices to farmers.

The approved MSP is based on recommendations of Commission for Agricultural Costs and Prices (CACP) which takes into account the cost of production, overall demand-supply, domestic and international prices, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors, the likely effect of the Price Policy on the rest of economy, besides ensuring rational utilization of production resources like land and water, while recommending MSPs.

The CACP being the expert body, its recommendations are generally accepted as such. However, in view of the gap in the demand and domestic supply of pulses and oilseeds, the CCEA has decided to give a bonus, over and above the recommendations of the CACP of Rs.425/- per quintal for Kharif pulses, namely Arhar (Tur), Urad and Moong, a bonus of Rs.200/- per quintal for Sesamum and a bonus of Rs.100/- per quintal for kharif oilseeds namely, Groundnut-in-shell, Sunflowerseed, Soyabean, and Nigerseed. This is expected to give a strong price signal to farmers to increase acreage and invest for increase in productivity of pulses and oilseeds.