Cabinet may hike rabi pulses MSP by up to Rs 600 per quintal

New Delhi: As preparations begin for the rabi sowing season, the Cabinet is expected to take a call on a proposal to hike minimum support price (MSP) by up to Rs 600/per quintal for pulses.

The cabinet, headed by Prime Minister Narendra Modi, is also likely to approve increase in wheat MSP by Rs 100 to Rs 1,625 per quintal for the 2016-17 rabi crop (winter) against Rs 1,525 per quintal last year.

"The Agriculture Ministry's proposal on rabi crops MSP is expected to come up for discussion before the cabinet anytime soon as sowing of winter crops like wheat will start this month," sources said.

Barring pulses, the ministry has accepted all the recommendations of the Commission for Agricultural Costs and Prices (CACP) for the 2016-17 winter crops.

Sources added that in the Cabinet note, the ministry has proposed Rs 200 per quintal bonus over and above the pulses MSP suggested by the CACP, taking total increase in the support price of gram and masoor to up to Rs 600 per quintal for this year.

The Ministry has proposed the support price of gram and masoor at Rs 4,000 per quintal each, including bonus, for the rabi season to boost domestic output, reduce the country's dependence on imports, and check prices.

Last year, masoor and gram MSP were fixed at Rs 3,500 and Rs 3,400 per quintal, respectively, after including Rs 75 per quintal bonus.

In case of wheat, the ministry has proposed Rs 100 increase in the MSP to Rs 1,625 per quintal for this year as against Rs 1,525 per quintal last year, sources said.

Wheat is the main crop grown in the rabi season and its sowing will begin from next month. Rabi crops will be marketed in 2017-18 starting April. The MSP is the rate at which government buys the grain from farmers.

This apart, the Ministry has recommended increase in the barley MSP by Rs 100 to Rs 1,325 per quintal and safflower by Rs 300 to Rs 3,600 per quintal for the 2016-17 rabi season.

The government is targeting 20.75 million tonnes of pulses production this year on account of good monsoon. It expects 13.5 million tonnes of output from the ensuing rabi season, while 8.7 million tonnes is estimated to have been harvested in the just completed kharif season.