Government fixes MSP for paddy

Sources said that last years’ special drought relief of Rs 20 per quintal has now been clubbed with MSP. While technically it will be a Rs 20 a quintal hike in the support price, clubbing of last year’s MSP with the special drought relief will in effect mean, the ‘real’ MSP would be the same as last year. The government has accepted the recommendation of the Commission on Agricultural Costs and Prices (CACP) on MSP for paddy. The new system has been worked out for monitoring grains’ stocks with FCI in association with the National Informatics Centre (NIC) and Indian Statistical Institute (ISI), sources said. ISI was asked to devise a new accounting system after the Comptroller and Auditor General (CAG) in 1997 pointed out discrepancies in the physical verification and accounting of the stocks with the FCI.

This system aims at harmonisation of stock verification with the FCI and other procurement cum storage agencies. Nearly 50 per cent of the FCI stocks are not physically stored by the corporation itself. Officials said it will help control pilferage by manipulation of data.