The government should raise the minimum support price (MSP) by 10 per cent immediately after it imposes ban on the export of agricultural commodities,says the Commission of Agricultural Costs and Prices. CACP advises the government on the pricing policy for major farm produce. "Our considered view is that as when the export ban is imposed on any agri-commodities,it is an implicit tax on farmers and should be immediately compensated with 10 per cent increase on the MSP," CACP Chairman Ashok Gulati said. It is necessary to link trade policy with farmers' income as the MSP does not fully cover the rising input costs,he said,adding that they are entitled for remunerative price and sudden ban on exports hurts their income. Citing the case of cotton,Gulati said,"When the ban was imposed on cotton export on March 5,I was in Maharashtra and I saw spot prices falling from Rs 4,000 to Rs 3,000 per quintal on that day. Such a fall in price will definitely affect farmers." He further said that CACP has already submitted its recommendations for the forthcoming Kharif (summer) season to the Agriculture Ministry. "We have suggested a substantial increase in MSP of cotton,paddy and other Kharif crops," he said. Because of higher support price fixed in 2011-12 crop year (July-June),the country is estimated to have harvested a record 250.42 million tonnes of foodgrains,including 102.75 million tonnes of rice and 88.31 million tonnes of wheat.
