The government on Thursday hiked the minimum price paid to farmers for paddy and pulses by Rs 100 and up to Rs 240 per quintal, respectively, to provide cushion in view of an expected fall in production owing to drought.
The decision to increase the minimum support price of various grades of paddy and different pulses was taken at a meeting of the Cabinet Committee on Economic Affairs.
"We are offering an attractive MSP. It (drought) is an evolving situation. The government will respond. . . MSP brings relief to the farmers," Home Minister P Chidambaram told reporters after the meeting.
The support price for common paddy will now stand at Rs 950 a quintal, while the A-grade variety would get Rs 980 per quintal -- an increase of Rs 100 a quintal for both.
The MSP for toor dal has been increased to Rs 2,300 from Rs 2,000, that of moong to Rs 2,760 from Rs 2,520 and sesame to Rs 2,850 from Rs 2,750 to Rs 2,850 per quintal.
Agriculture minister Sharad Pawar said on Wednesday nearly half of the country was reeling under drought and this could cause paddy production to fall by 10 million tonnes this Kharif season.
The country produced 99.15 million tonnes of rice in 008-09, including 84.58 MT in the last Kharif.
