Ex-CACP chief Haque wants paddy MSP hiked to Rs 1,000
The MSP of Rs.850 is not enough and it should be increased to Rs 1,000, said the former head of CACP, which recommends MSP of agriculture produce.
By PTI |
NEW DELHI: The MSP of Rs.850 is not enough and it should be increased to Rs 1,000, said the former head of CACP, which recommends MSP of agriculture produce, adding the delay in announcing MSP will not increase foodgrain production in the long run.
T Haque, the man who presided over the last Commission for Agricultural Costs and Prices (CACP) that recommended Rs 1,000 a quintal MSP for paddy, said the argument that realisation of rice from paddy is 67 pc and it cannot be compared with wheat, is wrong as rice prices have historically been higher than wheat.
Painting a gloomy picture of food security, Haque said the government would not be able to manage the situation unless price correction is done now giving benefits to the farmers so that food production is increased.
The government last week announced an adhoc MSP of Rs 850 a quintal for common grade paddy while referring the matter to the Prime Minister's Economic Advisory Council (EAC).
"The adhoc increase in the MSP of paddy to Rs 850 per quintal by ignoring the recommendation of CACP of Rs 1,000 per quintal for common variety and Rs 1,050 for Grade-A is unreasonable, as historically the cost of production of both paddy and wheat are almost equal," Haque said.
He was critical of the delay in the announcement of MSPs as the sowing of Kharif crops has begun in most places.
"The very purpose of MSP is lost in this case because farmers have not been able to allocate their land and other resources according to any advance price signal," he said.
T Haque, the man who presided over the last Commission for Agricultural Costs and Prices (CACP) that recommended Rs 1,000 a quintal MSP for paddy, said the argument that realisation of rice from paddy is 67 pc and it cannot be compared with wheat, is wrong as rice prices have historically been higher than wheat.
Painting a gloomy picture of food security, Haque said the government would not be able to manage the situation unless price correction is done now giving benefits to the farmers so that food production is increased.
The government last week announced an adhoc MSP of Rs 850 a quintal for common grade paddy while referring the matter to the Prime Minister's Economic Advisory Council (EAC).
"The adhoc increase in the MSP of paddy to Rs 850 per quintal by ignoring the recommendation of CACP of Rs 1,000 per quintal for common variety and Rs 1,050 for Grade-A is unreasonable, as historically the cost of production of both paddy and wheat are almost equal," Haque said.
He was critical of the delay in the announcement of MSPs as the sowing of Kharif crops has begun in most places.
ADVERTISEMENT
"The very purpose of MSP is lost in this case because farmers have not been able to allocate their land and other resources according to any advance price signal," he said.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
