Unfazed by the fear of below normal monsoon, the government announced only marginal hike in minimum support price (MSP) of paddy. The Cabinet Committee on Economic Affairs approved Rs 50 a quintal hike, which is less than five per cent, in normal grade paddy over previous year’s Rs 1,310 a quintal. “Paddy MSP has been hiked by Rs 50 to Rs 1,360 per quintal for 2014-15 crop year,” Ravi Shankar Prasad said reporters after the CCEA meeting on Wednesday.
He said the Grade ‘A’ paddy MSP has been hiked by Rs 55 a quintal to Rs 1,400 a quintal. The Commission on Agricultural Costs and Prices (CACP) had made recommendation to this effect before the met department came out with below monsoon prediction. Though below normal monsoon may add to the costs of irrigation of paddy, the CCEA appeared to have ignored this factor.
