Money News

India raises 2019/2020 common rice purchase price by 3.7%: minister

Labourers spread harvested rice crop for drying at a wholesale grain market in Chandigarh, October 4, 2016. REUTERS/Ajay Verma/Files

NEW DELHI (Reuters) - India has raised the price at which it will buy new-season common rice varieties from local farmers by 3.7 percent, the agriculture minister said on Wednesday.

For common grades of rice, the government has fixed the support price at 1,815 rupees ($26.34) per 100 kg, Narendra Singh Tomar told a news conference.

The government announces the so-called minimum support prices (MSPs) for 22 crops to set a benchmark. But state agencies buy limited quantities of staples such as rice and wheat at those prices, restricting benefits of guaranteed prices to only around 7 percent of the country’s 263 million farmers, according to various studies.

($1 = 68.91 rupees)

Reporting by Mayank Bhardwaj; Editing by Sanjeev Miglani