Central Govt may announce an all-time high hike of Rs. 60 per quintal in procurement price for paddy during 2006-07 kharif season. Of the Rs 60 per quintal rise, Rs 10 would be by way of a higher minimum support price (MSP), while farmers are to additionally receive a bonus of Rs 50 per quintal. The effective procurement price may work out to be Rs 630 per quintal for common paddy and Rs 660 per quintal for `Grade A' paddy.

The expected announcement of a Rs 50 per quintal bonus well ahead of the marketing season when paddy transplanting operations has just started is significant in the light of the delayed decision vis-à-vis wheat. In the latter case, the approval for a Rs 50 per quintal bonus came on April 21, by which time more than 80 per cent of the crop had already been marketed.

As a result, the Food Corporation of India (FCI) and State agencies have been able to procure hardly 9.25 million tonnes (mt) of wheat during the 2006-07 rabi marketing season (April-June), against 14.79 mt last year.