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India mulls price incentives to paddy growers

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NEW DELHI (Commodity Online): Indian government is considering incentives on the minimum price paid to paddy farmers who have spent out higher amount as input cost amid the drought due scanty monsoon.

The Center, on August 20, increased the minimum support price for 2009-10 seasons to Rs 950 per quintal for average quality, and to Rs 980 per quintal for higher grade.

In 2008-09, the government procured paddy at Rs 900 per quintal for fair average quality and at Rs 930 for higher grade. This included the bonus of Rs 50 per quintal over and above the MSP.

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