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Rice price may surge as Chhattisgarh govt announces bonus on paddy
Nov 14, 2017

The bonus on paddy crops announced by the Chhattisgarh government would result in the marginal hike of rice price in the state.
 
The state government had announced a bonus of Rs 300 per quintal on paddy that it would be procuring at minimum support price (MSP) from the farmers. The farmers would get the bonus for two years. Starting from the produce sold in the last kharif marketing season 2016-17.
 
The decision would help the farmers in Chhattisgarh to earn Rs 1,850 per quintal for common grade and Rs 1,890 for 'A' grade variety of paddy given the procurement at the MSP fixed by the union government at Rs 1,550 for common grade variety and Rs 1,590 for ‘A’ grade variety. 
 
Traders in the state believe that the high value for the yield given to the farmers would result in the increase of rice price in the open market. Besides, there is also the possibility of short supply in the market that will ultimately inflate the commodity price.
 
Due to severe drought, paddy production has been affected in the state and the farmers will prefer to sell whatever yield they get to the government due to bonus. The government preliminary report suggested a 30 per cent loss in paddy production due to drought. For the kharif marketing season 2017-18, Chhattisgarh had set a target to procure 6.9 million tonnes of paddy at MSP.
    

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