Indian govt hikes minimum support price for fiscal 2013

The India government has raised its support price to farmers for common rice to Rs 1,250 per tonne from Rs 1,080 last year, Home Minister P Chidambaram said on Thursday, as it seeks to protect its agriculture from global price swings.

India is a major producer and consumer of grains and the government sets minimum support prices (MSP) for crops to encourage its agriculture sector, which accounts for some 15 per cent of the $2 trillion economy, and ensure supplies for its subsidy programmes aimed at feeding half a billion poor.

The government also raised its fiscal 2013 support price for soybean and corn by 33 per cent and 20 per cent to Rs 2,200  per tonne and Rs 1,175 a tonne, respectively.

The cotton purchase price for the long staple varient has been raised by 18 per cent to Rs 3,900 a tonne.

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