HYDERABAD: Chief Minister Y.S. Rajasekhara Reddy has urged Union Agriculture Minister Sharad Pawar to fix remunerative price for levy rice at the earliest as paddy will arrive in substantial quantities in the market from the first week of November.

In a letter to Mr. Pawar, he said the area under paddy in the State had increased and the entire rice milling industry had to gear up to purchase paddy from farmers at the minimum support price (MSP). Delayed fixation of levy price had rendered the market dull and any more delay might result in a "depressing situation," he said

Motivating millers

"We have been anxiously waiting for fixation of reasonable price of levy rice so as to motivate the rice millers to step up delivery of rice to meet requirements of PDS and other schemes," he added.

Stating that the Food Corporation of India did not appear to have required stocks of rice not only in Andhra Pradesh, but in other States as well, the Chief Minister pointed out that it would have an adverse impact on procurement of rice if the rice millers stopped purchase of paddy from farmers, on the plea of unrealistic levy price. At the same time, farmers would agitate for purchase of their paddy at MSP.

MSP increase

Dr. Reddy stated that it was essential to fix remunerative price for levy rice duly taking into consideration the increase of Rs. 20 a quintal in the MSP for paddy during 2004-05 and 2005-06 and other incidentals.

The Government had also recommended the request of the rice millers for inclusion of certain cost components in the levy price. The Centre was also requested for appointment of a high-level committee to decide on the remaining disputed claims of rice-millers.

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