Andhra seeks further hike in support price for rice

Andhra Pradesh has passed a resolution urging the Centre to hike the MSP on paddy for the 2007-08 season from Rs 745 to Rs 990 per quintal.

HYDERABAD: Andhra Pradesh will push for a further hike in the minimum support price of paddy with the Centre.

The state assembly has passed a resolution urging the Centre to hike the MSP on paddy for the 2007-08 season from Rs 745 to Rs 990 per quintal (for common variety) and Rs 775 to Rs 1,088 per quintal (for Grade A variety). The MSP is the floor price for paddy purchase. The proposed new price will be 50% more than the cost of production of paddy and is sync with the recommendations made by renowned agriculture scientist MS Swaminathan.

The resolution was made after a two day protest by the Opposition parties led by the Telgu Desam Party chief N Chandrababu Naidu.

The state government, on its part, has said that it is working closely with the West Bengal and Tamil Nadu governments to demand an MSP for paddy at par with wheat. These three states are home to a large number of paddy farmers.

According to a state government report, the gap between the MSP on wheat and paddy has widened over the last two and half decades. The MSP for wheat was Rs 140 per quintal in 1982-83 as against Rs 122 per quintal for common variety of rice — a gap of Rs 12 per quintal. This gap has widened to Rs 200 per quintal between these two commodities now.
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