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Govt. decision on paddy support price criticised

Gargi Parsai

NEW DELHI: The Government has come in for criticism from the former Commissioner of the Commission for Agriculture Costs and Prices (CACP), T. Haque, who said that tinkering with the recommendation of the CACP would dilute its role and ultimately lead to the scrapping of the minimum support price (MSP) regime to expose farmers to market forces.

Terming as “wrong” the decision of the Government to refer the recommendation of the Commission to the Prime Ministers’s Economic Advisory Council, Mr Haque said here that the CACP was the sole designated body having representation of experts and farmers to recommend the MSP of essential farm commodities. The CACP is an autonomous body.

Last Thursday, the Cabinet Committee on Economic Affairs, chaired by Prime Minister Manmohan Singh, referred the recommendation of the CACP, backed by the Union Agriculture Ministry, to the Economic Advisory Council of the Prime Minister. Instead of the Rs.1,000 a quintal for common variety and Rs.1,050 a quintal for Grade A variety of paddy, the CCEA, in a rare move, resorted to an ad hoc MSP of Rs.850 a quintal for common and Rs.875 a quintal for the Grade A variety.

According to Mr Haque, who chaired the CACP that recommended in February the MSP of Rs.1,000 a quintal, the hike would have been adequate as it was arrived at after intensive consultations. “For the first time, an element of 10 per cent profit was introduced to raise farmers’ incomes. By delaying the process the very purpose of announcing the MSP has been lost,” he said.

‘Global situation precarious’

The expert said that the global rice situation was precarious as some of the rice exporting countries had decided to ban export of rice. The demand-supply situation of rice was precarious globally and the price of rice in the international market had gone up by 68 per cent during January-April, 2008.

He said that delay in the announcement of paddy MSP may affect output as farmers were not able to allocate their land and other resources according to any advance price signal.

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