The Hindu Business Line : CM to meet Manmohan Singh, seek raise in MSP for paddy

Hyderabad, Oct. 23 Keeping in mind the increasing demand for hiking MSP (minimum support price) for paddy to Rs 1,000, the Andhra Pradesh Cabinet has decided to take up the issue with the Union Government.

Following a detailed discussion on the issue at the Cabinet meeting here on Tuesday, the Chief Minister, Dr Y.S. Rajasekhara Reddy, has decided to meet the Prime Minister, Mr Manmohan Singh, in New Delhi on November 2.

He would request the Prime Minister to increase the MSP for paddy, keeping in mind the recommendations of Prof. Swaminathan committee’s recommendations.

Addressing a press conference here, Mr Anam Ramanarayana Reddy, Minister for Information and Public Relations and Tourism, said the Chief Minister would also meet Ms Sonia Gandhi, Chairperson of UPA’s National Advisory Council, and Mr Sharad Pawar, Union Minister for Agriculture, to discuss the issue.

The State already spoke to major paddy growing States such as West Bengal, Uttar Pradesh, Tamil Nadu and Punjab to rally their support. The Cabinet has decided to raise the VAT (value added tax) on gutkha and kara masala to 25 per cent in order to discourage consumption of such tobacco products.

A relevant amendment would be made in this regard, the Minister said.

Chit Fund Act

The Cabinet also okayed a draft Bill, replacing an Ordinance to effectively regulate the chit fund business in the State.

The Bill would be introduced in the ensuing Assembly session.

Some of the features would be, prescribing Rs 1 lakh as minimum paid-up capital for doing chit business and mandating 100 per cent security for the chit amount as against the present 50 per cent.