Govt. hikes paddy minimum support price by Rs 100; pulses by Rs.240 per quintal(Lead:Hikes)

New Delhi, Aug.20 (ANI): 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.

"Reserves of paddy, rice and wheat are large enough to take care of 30 months requirement. Therefore at this stage I think we should take it step by step. At this stage we are offering very attractive MSP," said Chidambaram.

"Let's see how the production turns out to be. Let's see how the procurement turns out to be. This is an evolving situation and the government will respond according to the needs of an evolving situation," he added.

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)