Government Raises MSPs for Kharif Crops

The Government has fixed the Minimum Support Prices (MSPs) for Kharif Crops of 2010-11 season. The MSP of Paddy (Common) has been fixed at Rs1000 per quintal and of Paddy (Grade A) at Rs1030 per quintal, which represents an increase of Rs. 50 per quintal over the last year’s MSPs.

Rise in MSPs will result in an increase in disposable incomes which further strengthens my view that demand for consumer durables, automobiles and FMCG is likely to rise.

The MSPs of Jowar (Hybrid), Bajra and Maize each have been raised by Rs40 per quintal and fixed at Rs880 per quintal. The MSP of Jowar (Maldandi) has also been raised by Rs40 per quintal over the last year’s MSP and fixed at Rs900 per quintal. The MSP of Ragi has been fixed at Rs965 per quintal – raising it by Rs50 per quintal over the last year’s MSP.

The MSP of Arhar (Tur) has been fixed at Rs. 3000 per quintal, of Moong at Rs. 3170 per quintal and of Urad at Rs.2900 per quintal, marking an increase of Rs700 per quintal, Rs. 410 per quintal and Rs. 380 per quintal, respectively over the last year’s MSPs. In addition, an additional incentive at the rate of Rs. 5 per kg for tur, urad and moong sold during the harvest/arrival period of two months to procurement agencies shall also be provided.

The MSPs of Groundnut-in-shell, Sunflower seed and Niger seed have been increased by Rs. 200 per quintal, Rs. 135 per quintal and Rs. 45 per quintal over the last year’s MSPs and have been fixed at Rs. 2300 per quintal, Rs. 2350 per quintal and Rs. 2450 per quintal, respectively. The MSPs of Soyabean (Black), Soyabean (Yellow) and Sesamum have been increased by Rs.50 each over the last year’s MSPs and fixed at Rs. 1400 per quintal, Rs.1440 per quintal and Rs.2900 per quintal, respectively.

MSP of Cotton remains unchanged at Rs. 2500 per quintal for Staple length (mm) of 24.5 – 25.5 and Micronaire value of 4.3 – 5.1 and Rs. 3000 per quintal for Staple length (mm) of 29.5 – 30.5 and Micronaire value of 3.50 – 4.30.