| Date: |
10-06-2015 |
| Subject: |
Cabinet may look at higher MSP for paddy |
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NEW DELHI: The Cabinet on Wednesday is likely to consider higher minimum support price (MSP) for paddy and a relief package for the beleaguered sugar industry to help tackle farm distress. The interest free loan to the sugar industry will enable the producers to pay the dues of farmers, which is estimated at about Rs 19,000 crore.
The higher MSP for paddy comes at a time when there are doubts about the strength of the June-September southwest monsoon rains, sources said.
The government is keen to portray its farmer friendly image and dispel criticism about its perceived pro-corporate stance.
Sources said that the agriculture ministry was asked to work out higher MSP for paddy after the weather office predicted patchy monsoon. The earlier stance of the government has been to raise the MSP marginally due to fear of stoking inflation. There were reports that commission for agricultural cost and prices (CACP), the entity which recommends the support price had proposed an increase of about Rs 50 per quintal.
TOI has learnt that the food ministry has proposed Rs 6,000 crore interest free loan for the sugar industry to tide over its difficult situation. Cane growers across the country, particularly in Uttar Pradesh and Bihar, have seen their dues swell as producers failed to pay their arrears due to the excess production and falling prices.
In April, the Cabinet had raised the import duty on sugar to 40% in a move to curb imports and had also removed the 12.36% excise duty on ethanol supplied for blending, for the 2015-16 season (October-September), to pass on price benefits to mills. However, the government has turned down the millers' proposal to buy 10% of the stock at market rate and create a buffer, which they had claimed would help recover.
Source : timesofindia.indiatimes.com
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