The Hindu : Business : Minimum support price for wheat, other crops hiked

Online edition of India's National Newspaper
Thursday, Nov 04, 2004

Business

Business

Minimum support price for wheat, other crops hiked

By Our Special Correspondent

NEW DELHI, NOV. 3. The Cabinet Committee on Economic Affairs (CCEA) today fixed the minimum support price (MSP) for fair average quality wheat at Rs. 640 per quintal for the 2004-05 rabi season. This works out an increase of Rs. 10 a quintal over the previous MSP.

The CCEA also fixed the MSP for barley at Rs. 540 a quintal, gram at Rs. 1,425, masur (lentil) Rs. 1,525, rapeseed/ mustard Rs. 1,700 and safflower Rs. 1,550. The prices of other oilseeds belonging to the rapeseed/mustard group would be fixed on the basis of their normal market price differentials with rapeseed/mustard, an official spokesperson told the media after the CCEA meeting.

It was also decided that the National Agricultural Cooperative Marketing Federation (NAFED) would continue to be the nodal agency for procurement of oilseeds and pulses and losses, if any, would be fully reimbursed. The non-price recommendations made by the Commission for Agricultural Costs and Prices would be referred to the divisions or departments concerned for appropriate action.

Another decision taken at the CCEA meeting was to implement the `National Mission on Bamboo Applications,' which would lead to an anticipated value addition of around Rs. 800 crores annually by the end of the Tenth Plan and substantial employment creation. A budgetary support of Rs. 100 crores from the Department of Science and Technology and an anticipated contribution of Rs. 64 crores by participating agencies had been provided for.

The Technology Information, Forecasting and Assessment Council would implement the Mission, under the supervision of the Department of Science and Technology. The CCEA also revised the cost estimated of the Tehri Hydroelectric Project, stage one, along with substantial works of Tehri Pump Storage Plant, amounting to Rs. 6,621.32 crores, including interest during construction and financing charges of Rs. 560 crores. The loan of Rs. 563.19 crores released by the Government would be converted into equity with effect from the drawl of the loan, that is, 1998-99 to maintain the debt: equity ratio of 1:1 as recommended by the Public Investment Board.

The loan for the power component of the project, amounting to Rs. 2,720 crores, would be partly raised by the project implementing authority from external commercial borrowings (Rs. 751.80 crores) for purchase of equipment under international competitive bidding and partly from the Power Finance Corporation (Rs. 1,206 crores). Once the loan was converted into equity, there would be no further budgetary support from the Central Government.

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