(a) whether the support price of common grade paddy and Grade-A paddy was Rs.10 per
quintal more during 2004-05 as compared to 2003-04;
(b) if so, the reasons therefor and the price fixed this year for paddy and levy rice;
(c) whether paddy is the only crop on which Union Government imposes levy on rice
produced from it;
(d) if so, the details thereof;
(e) whether the government increases support price of levy rice along with paddy and;
(f) if so, the details thereof?
MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION(DR. AKHILESH PRASAD SINGH)
(a) The Minimum Support Price (MSP) of paddy common and Grade A for 2004-05 was Rs.
560 and Rs. 590 per quintal respectively which were higher by Rs.10 per quintal over the MSP
for 2003-04.
(b) The MSP of a crop is recommended by Commission for Agricultural Costs & Prices
(CACP) after analysing a wide range of data which includes the cost of cultivation/production.
The MSP of paddy common and Grade A for 2005-06 has been fixed at Rs. 570 per quintal and
Rs.600 per quintal respectively. As regards levy rice, the prices for 2005-06 kharif marketing
season are yet to be fixed.
(c) & (d) Apart from paddy, levy is imposed on sugar also. A certain percentage of sugar
produced by sugar factories is requisitioned by the Government in every sugar season. The levy
sugar is distributed under the Public Distribution System (PDS). With effect from 1st February,
2001, levy sugar supply under the PDS has been restricted only to BPL families in all States/UTs
except the North Eastern States, Hill states and Island Territories.
(e) & (f) The prices of levy rice for every levy procuring State is fixed for every Kharif
Marketing Season after taking into account MSP and all incidental costs such as statutory
charges and cost of gunny bags, and other incidental expenses.