CACP has also recommended a higher MSP for pulses to boost domestic production and reduce country's dependence on imports.
The Cabinet Committee on Economic Affairs (CCEA) is likely to approve on Wednesday a proposal to raise the minimum support price (MSP) of paddy by Rs 50 to Rs 1,410 per quintal for this year.
"The CCEA meeting is scheduled for tomorrow. The proposal on MSP of kharif (summer) crops is listed on the agenda for discussion," Agriculture Secretary Siraj Hussain told PTI.
The Agriculture Ministry has moved a CCEA note on MSP of various crops for the 2015-16 kharif season taking into account the recommendations of the Commission for Agricultural Costs and Prices (CACP), a government advisory body.
According to sources, CACP has recommended a modest increase of Rs 50 per quintal to Rs 1,410 in the MSP for paddy farmers for the 2015-16 kharif season.
It has also suggested a hike of Rs 100 per quintal in the support price of ragi to Rs 1,650 and Rs 30 per quintal for groundnut MSP to Rs 4,030.
CACP has also recommended a higher MSP for pulses to boost domestic production and reduce country's dependence on imports.
Sources said it is to be seen whether CCEA will approve the CACP's suggestions or take the political route to fulfill the BJP's 2014 poll promise of fixing MSP at 50% profit margin over the cost of production.
Usually, the government accepts CACP's recommendations on the crop pricing issue.
MSP is the rate at which government buys the grain from farmers.
Paddy is the main crop grown in the kharif (summer) season. Sowing of kharif crops has already started with the onset of the South-West monsoon from June.
According to government data, area sown under the rice crop was higher at 4.71 lakh hectares till the last week of this season as against 4.52 lakh hectares in the same period last year.
The sowing area under cotton, sugarcane and jute remained lower in the said period.
Rice production is pegged at 102.54 million tonnes in the ongoing 2014-15 crop year (July-June) as against the record 106.65 million tonnes in the previous year. An increased MSP may encourage farmer for greater sowing of paddy.
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