The Union Cabinet will consider on Thursday a proposal to give a bonus of Rs.50 per quintal on the minimum support price of kharif paddy that is being procured, following concerns about getting adequate quantity for the Central pool.
It is expected that the kharif paddy output would be lower this season by 12 to 16 million tonnes owing to reduced sowing due to erratic Southwest Monsoon. Against 388.26 lakh hectares sown last year, the area under paddy this kharif was 327.40 lakh hectares.
The first production estimates would be declared in early November.
So far the government agencies have procured 73.71 lakh tonnes of paddy against about 75 lakh tonnes procured in the corresponding period last year.
Procurement was delayed this year as sowing was delayed, sources said.
Several States have been demanding parity in the MSP of paddy with wheat. This year again, Punjab, Haryana and southern and eastern States have raised the demand for a MSP bonus.