NEW DELHI, JULY 20: In a move likely to benefit thousands of farmers, the Centre today announced around ten per cent increase in Minimum Support Price (MSP) of 14 commodities including paddy, cotton and pulses.The increase ranges from Rs 25 to Rs 145 a quintal and was fixed slightly higher than the Agriculture Price Commission (APC) recommendations.Explaining the reasons for announcement of higher support price, Information and Broadcasting minister Pramod Mahajan told reporters the commission has recommended that a higher support price can be fixed for those states, where the farmers were paying higher electricity charges.However, the government took the view that it was not administratively possible to announce variable rates of a commodity. So it announced uniform support price, Mahajan said.Justifying the decision to hike the MSP, Mahajan said the government has to announce Kharif prices normally before the commencement of sowing to ensure better returns for the farmers. Under the present circumstances, there was no option but to increase the prices, he added.Replying to a question, the minister said the government had not got any clearance from the election commission to increase the MSP.The paddy prices had been increased by Rs 50 a quintal, a hike of more than ten per cent. The common variety paddy prices has been fixed at Rs 490 a quintal and grade A prices fixed at Rs 520 a quintal as against the APC recommendations of Rs 465 and Rs 495 a quintal respectively.Similarly, the cabinet has also recommended increase in cotton support prices by Rs 25 more than the APC recommendations. Other commodities' support prices were also improved by Rs five a quintal over than the APC recommendations.
