New Delhi, Aug. 20 : The Government on Thursday announced a big increase in the minimum support price of the kharif crop.

The minimum support price (MSP) for the common variety of paddy has been hiked by 100 rupees per quintal, while for pulses, the MSP has been raised by 100 rupees per quintal.

Addressing reporters after a meeting of the Cabinet Committee on Economic Affairs, Home Minister P Chidambaram announced the hike in MSP of paddy, some pulses and sesame.

The Centre also allowed states to borrow up to an additional 21,000 crore rupees in the current fiscal to deal with the economic slowdown.

The new guidelines will enable states to borrow up to 4 per cent of their Gross State Domestic Product against 3.5 per cent earlier. (ANI)