The Centre government has announced a minimum support price (MSP) of Rs 1000 per quintal for the 2007-08 wheat crop to be marketed from April.

The Cabinet Committee on Economic Affairs has also declared a Rs 50 per quintal bonus, in addition to the MSP on the existing year’s paddy crop. The pronouncement comes together with a decision to ban export of all non-basmati rice “immediately”.

The minimal support price of Rs 1,000 per quintal for the wheat to be soughed from November exercises Rs 150 more than the effectual procurement rate of Rs 850 per quintal paid during last fiscal (2006-07).

On the other hand, the final procurement rate for common forms of paddy would be Rs 695 per quintal, whereas Rs 725 per quintal for Grade ‘A’ paddy. The efficient growth over 2006-07 after factoring in the bonus arrives to Rs 75 per quintal, marking the biggest ever increase for any crop year.

About the prohibition on non-basmati exports, the Finance Minister, Mr. Chidambaram has told that it was made by the need to guarantee enough rice procurement for the Central pool.

Mr. Chidambaram said, “Rice offtake from the public distribution system has doubled from 105 lakh tonnes (lt) in 2002-03 to 212 lt last year. We will review it (the ban) later.”

In 2006-07, the country exported about 3.5 million tonnes of non-basmati rice, which was valued at about $1 billion. At present, non-basmati forms are bringing around $300 per tonne free-on-board.

The CCEA has also sanctioned the MSPs of other rabi crops for the existing (2007-08) season: Rs 1,700 for masur, Rs 1,600 for gram,Rs 1,650 for safflower, Rs 1,800 per quintal for rapeseed-mustard and Rs 650 for barley.