Friday, 28 August 2009

India Rice Purchase Price Hike To Swell Govt Stocks

India's government increased minimum support prices for rice by INR100 per 100 kilograms, hoping to buy more from farmers to build stocks and cushion the impact of drought across large parts of the country.
 
The move is aimed at supporting farmers and encourage them to sell their produce to official agencies, but would lead to higher prices for consumers who are shelling out over 40 per cent more for pulses than they did in June.

The MSP for common variety of paddy has been hiked to Rs 950 from Rs 850 per quintal and for the A-grade to Rs 980 from Rs 880 per quintal for 2009-10 season.

The decision to increase the support prices for paddy, toor, moong and sesame was taken by the Cabinet Committee on Economic Affairs, chaired by Prime Minister Manmohan Singh.

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