Centre raises support prices for rabi crop

To ban export of non-basmati rice

NEW DELHI: The central government on Tuesday announced enhanced support prices for rabi crops for the 2007-08 season and also increased the procurement price for the paddy/rice crop.

Briefing reporters on the decisions taken by the Cabinet Committee on Economic Affairs (CCEA), Finance Minister P Chidambaram said the government also decided to ban export of non-basmati rice. This was done to build sufficient stocks of rice for PDS and other welfare schemes.

Chidambaram said the need to augment stocks had become necessary in view of steep rise in offtake of rice, which more than doubled, shooting up from 105 lakh tonnes in 2002-03 to 212 lakh tonnes in 2006-07. The increase was due to launch of welfare schemes with food component as well as a change in dietary habits in the country.

For enhanced procurement of paddy/rice in Kharif Marketing Season (KMS) of 2007-08, the CCEA decided to give an incentive bonus of Rs 50-100 per quintal during KMS 2007-08 in addition to the announced minimum support price (MSP) of Rs 645 per quintal for common grade paddy, bringing it to Rs 695-745 per quintal.

For A grade paddy, the price would be Rs 675 per quintal, plus the bonus. This incentive bonus will be made applicable during the entire procurement period in KMS 2007-08, the finance minister said.

The benefit of grant of incentive bonus on paddy in addition to MSP for KMS 2007-08 will encourage farmers to grow more paddy and also contribute more for the central pool, Chidambaram said.