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This is an archive article published on October 30, 2009

Cabinet clears paddy bonus

The Cabinet Committee on Economic Affairs CCEA on Thursday announced a Rs 50 per quintal bonus over and above the minimum support price MSP for paddy....

The Cabinet Committee on Economic Affairs CCEA on Thursday announced a Rs 50 per quintal bonus over and above the minimum support price MSP for paddy to maximise procurement of paddy for government stocks so that the government is in a position to release adequate quantities of rice under PDS and other welfare schemes and provide a cushion against price rise.

The bonus on paddy would be over and above the MSP of Rs 950 per quintal for common and Rs 980 per quintal for Grade A varieties of paddy.

The Cabinet also gave its approval to changes in the sugarcane pricing regime,introducing fair and remunerative price FRP instead of the existing statutory minimum price SMP. It has revised the sugarcane SMP of Rs 107.76 per quintal,announced in June,to an FRP of Rs 129.84 per quintal for the lowest grade sugarcane. Though the regime change was necessitated by disputes over computation of price for sugar mills,many farmers organisations have already decided to oppose the move.

The Cabinet also decided to introduce the Constitution One Hundred and Tenth Amendment Bill,2009 in the Winter Session of Parliament to curtail state interference in cooperative societies and provide a uniform legislative framework to ensure the democratic and professional functioning of cooperatives.

Under the proposed amendments,an independent authority like the State Election Commission will be asked to conduct elections in cooperative societies. The amendments also seek to fix terms of office-bearers at five years,mandate independent professional audit,regular general body meetings and filing of returns and timely elections.

 

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