Delhi,12 June:The govt raised the MSP for paddy by Rs 105 to Rs 850 per quintal for this year as an adhoc measure before leaving the matter to the Prime Minister’s Economic Advisory Council for final decision on increasing it to Rs 1,000 as recommended by CACP.
The Commission for Agricultural Costs and Prices (CACP), the advisory body on fixing the minimum support price for all the crops, had recommended a Rs 255 hike in the MSP from Rs 745 a quintal for common variety paddy.
The MSP for paddy was Rs 645 per quintal for common variety and Rs 675 a quintal for higher grade during 2007-08.The Centre also offered a bonus of Rs 100 per quintal over and above the MSP.
"Some states like Gujarat, Madhya Pradesh and Orissa wanted less than Rs 1,000 a quintal as MSP, while some others wanted more than that. In view of divergent views, the matter was today referred to the Prime Minister’s Economic Advisory Council," Finance Minister P Chidambaram told reporters after a meeting of the Cabinet Committee on Economic Affairs on Thursday.
In fact, Himachal Pradesh wanted MSP for paddy to be Rs 645 a quintal, less than even the current price of Rs 745 a quintal, he added.For ‘A’ variety of paddy CACP has recommended Rs 1,050 a quintal against the present Rs 775 as MSP.
The decision on it would also be taken in a calibrated manner, the Finance Minister said.MSP on other agriculture commodities were not fixed as there was no urgency since their market prices are ruling high, he said.
Govt reduces prices of complex fertiliser
The government on Thursday announced a reduction in prices of complex fertilisers to encourage farmers to use nutrient-based organic instead of regular nutrient like urea and DAP.
The decision to reduce prices was taken at a meeting of the Cabinet Committee on Economic Affairs, chaired by Prime Minister Manmohan Singh, amid reports that there is a supply crisis of the crucial agri nutrient.
"The prices of complex fertilisers will come down by Rs 1,416 per tonne or Rs 70 per bag," Finance Minister P Chidambaram told reporters after the CCEA meeting.
The government has also approved the uniform freight subsidy scheme for fertilisers to make them available to farmers in different areas at uniform price.
There will, however, be no change in prices of urea, MoP, DAP and SSP during 2008-09, he said, while announcing the decision of the government to shift to nutrient-based pricing of subsidised fertiliser mooted by the Ministry of chemicals and fertilisers.
The complex fertilisers are those which have at least two nutrients, while regular fertilisers have only one nutrient like nitrogen (N), phosphorous (P) or potash (K).
The uniform freight subsidy scheme which is based on payment of actual freight, Chidambaram said, will ensure easier availability of fertiliser in all parts of the country.
Currently, fertiliser companies receive a fixed amount as freight irrespective of distance from the production centre to the sale point.The industry for long had been demanding payment of actual freight.
Replying questions on shortage of fertiliser, he said, "The Ministry of fertiliser assures us that there is no shortage. Adequate fertiliser are available and being provided."
The states, he added, should ensure that there are no movement bottlenecks, which could be cleared at local level.Courtsey : DD NEWS