The Union Cabinet chaired by the Prime Minister Narendra Modi on Wednesday decided to give a bonus of Rs.200/- per quintal for pulses over and above the recommendations of the CACP. This is expected to give a signal to farmers to increase acreage and invest for increase in productivity of pulses.
The Cabinet Committee on Economic Affairs has given its approval for the Minimum Support Prices (MSPs) for Kharif Crops of 2015-16 Seasons. The decision is based on recommendations of Commission for Agricultural Costs and Prices (CACP) for the Price Policy for Kharif Crops for the Marketing Season 2015-16.
CACP takes into account the cost of production, overall demand-supply, domestic and international prices, inter-crop price parity, terms of trade between agricultural and non-agricultural sectors, the likely effect of the Price Policy on the rest of economy, besides ensuring rational utilization of production resources like land and water, while recommending MSPs.
The CACP being the expert body, its recommendations are generally accepted as such. However, in view of a large surplus of cereals in contrast to huge deficit of pulses, the Cabinet decision is seen as pro-farmers.