Govt rises MSP for Pulses

Surging prices notwithstanding, the government has hiked the minimum support price of pulses by up to Rs 700 to a maximum of Rs 3,170 a quintal but support for paddy has been increased by a meager Rs 50 a quintal. The MSP for pulses, considered to be the wholesale market benchmark, is just about 30--50 per cent of retail prices of some varieties like moong, urad and arhar that are being sold for up to Rs 100 a kg in retail market. A decision for raising MSP of kharif crops for 2010-11 was taken at a meeting of the Cabinet Committee on Economic Affairs, chaired by Prime Minister Manmohan Singh. An agriculture ministry official later explained that higher MSP was meant as an inducement to farmers to go for increasing the acreage for cultivation of pulses, for which India is a net importer and the sharp rise in prices is on account of higher commodity prices globally.

The highest increase was given for the widely consumed arhar dal (tur), the MSP for which has been increased to Rs 3,000 a quintal from Rs 2,300 last year. The MSP for moong, another popular variety, has been increased to Rs 3,170 per quintal from Rs 2,760. Support price for urad has been increased to 2,900 a quintal from Rs 2,520 last year.