Drought crisis: Govt may hike paddy MSP to help farmers

Amid growing concern over the drought hitting the farm sector hard,the UPA government is seriously considering increasing the minimum support price (MSP) of paddy,the kharif (summer-sown) crop,by around 12 per cent for the year 2009-10.

The government has proposed to increase the MSP the price the government pays to farmers for procurement of common paddy to Rs 950 per quintal,up 11.76 per cent and the MSP of Grade A paddy to Rs 980 per quintal,up by 11.36 per cent,sources told The Indian Express.

A special bonus of Rs 50 per quintal for both kinds of paddy is also being envisaged. A decision is likely to be taken by the Cabinet Committee for Economic Affairs tomorrow.

Ten states have declared 246 districts as drought-affected,

this year there is 29 per cent less rainfall. Our top priority is to save the standing crop, Agriculture Minister Sharad Pawar said today after a meeting with state Food Ministers here.