The Cabinet Committee on Economic Affairs (CCEA) is likely to take a decision soon on raising the support price of kharif crops such as paddy for the 2011-12 crop year, the Agriculture Minister, Mr Sharad Pawar, has said.

“Everything (proposal) is ready. I think, next Cabinet (meeting) will be able to take a final view on support price,” Mr Pawar told reporters on the sidelines of an ICAR-CII industry meet here today.According to official sources, the Agriculture Ministry has proposed a Rs 160 hike in the MSP of paddy (common variety) to Rs 1,160 a quintal for the 2011-12 crop year (July-June) against Rs 1,000 a quintal in 2010-11.

The Agriculture Ministry's proposal is in line with the recommendation of the Commission for Agricultural Costs and Prices (CACP), which suggested a support price (common grade) of Rs 1,080a quintal for paddy and a bonus of Rs 80 on top of it.

Rice is grown in both the kharif and rabi seasons. Kharif sowing begins with the start of the South-West monsoon in June and harvesting starts from October 2011.

The CACP, which suggests the MSP of 40 agri-commodities, has also recommended a substantial increase in the MSP of pulses and oilseeds to reduce the country's dependence on imported edible oils and pulses. A rise in MSP is necessary to cover farmers' labour and energy costs, which have risen by more than 20 per cent in the last one year, the CACP said in its report.

It also said the country's rice output cannot be improved to meet the demand of the proposed National Food Security Act unless paddy farmers get a remunerative price.

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