The Hindu : Andhra Pradesh News : MSP for farm products to be hiked again: YSR

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Monday, Jul 28, 2008
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Andhra Pradesh

Andhra Pradesh

MSP for farm products to be hiked again: YSR

Special Correspondent

State to reimburse crop loans repaid by ryots in September

HYDERABAD: Chief Minister Y.S. Rajasekhara Reddy on Sunday said the Central Government is trying to hike the Minimum Support Price (MSP) for agricultural products again this year.

It was only last month that the Government increased the MSP for common and Grade ‘A’ varieties of paddy for the current season. If the MSP is hiked again this year, the rates would be applicable for next year.

Without elaborating on the proposal, Dr. Reddy stated at a meeting to mark the golden jubilee celebrations of AP Marketing Federation (MARKFED) here on Sunday that increasing the prices of agricultural commodities is an election promise of the United Progressive Alliance Government.

He disclosed that the State Government would reimburse in September the crop loans repaid by farmers prior to the loan waiver announced by the Centre.

The State Government had announced reimbursement with a ceiling of Rs. 5,000 to an estimated 22 lakh farmers who promptly repaid their loans.

The Government is computing the burden caused by reimbursement of repaid loans. The amount was initially estimated at Rs. 1,100 crore but the figure is likely to go up to Rs. 1,800 crore. If the Government has to shell down Rs. 1,800 crore, farmers would get the amount in two instalments, he said.

Dr. Reddy deplored the role of MARKFED in checking irregularities in supply of fertilizer to farmers. As a major player in the distribution network with a stake of 40 per cent, MARKFED failed to prevent exploitation by traders who resorted to hoarding, excess pricing and black-marketing.

He warned presidents of cooperative marketing societies against taking advantage of the crisis in market which has also witnessed panic buying by farmers. They would be held responsible for lapses by dealers.

Cooperation Minister Mohammed Fareeduddin, Agriculture Minister N. Raghuveera Reddy, MARKFED Chairman Ponnam Prabhakar and Managing Director Y. Madhusudhan Reddy also spoke.

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