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CACP for increase in oilseeds MSP by Rs 50-100/qtl for 2016-17

CACP for increase in oilseeds MSP by Rs 50-100/qtl for 2016-17

Press Trust of India | New Delhi

April 27, 2016 Last Updated at 14:22 IST

Government advisory body on crop pricing CACP has recommended a marginal hike in the minimum support price of oilseeds by Rs 50-100 per quintal and for cotton by Rs 60 for the 2016-17 kharif season.

MSP is the rate at which government buys the grain from farmers. Sowing of kharif crops will begin with the onset of the Southwest monsoon in June.

According to sources, the Commission for Agricultural Costs and Prices (CACP) has proposed an increase in the support price of soyabean yellow by Rs 75 per cent quintal to Rs 2,675 for 2016-17.

The body has proposed Rs 50 per quintal jump in the MSP of sunflower seed to Rs 3,850 per quintal, Rs 90 per quintal increase in the support price of groundnut shell to Rs 4,120 and Rs 100 per quintal hike in sesamum seed MSP to Rs 4,800 for the 2016-17 kharif season.

In case of cotton, the CACP has suggested an increase of Rs 60 per quintal each to Rs 3,860 for small staple cotton and Rs 4,160 for long staple cotton for this year.

The CACP has already submitted its report on kharif crops for 2016-17 to the Agriculture Ministry, which is in the process of getting views from states and other ministries before moving a cabinet proposal for final approval.

Oilseeds have suffered decline in production putting pressure on import of edible oils. There is a need to expand cultivation and increase crop yields.

Oilseeds production is likely to drop to 26.34 million tonnes in 2015-16 crop year (July-June) from 27.51 million tonnes in the previous year year, mainly due to fall in soyabean output in view of uneven distribution of rains.