Govt hikes minimum support price of paddy

   
THE GOVERNMENT raised the minimum support price (MSP) for paddy by Rs 105 to Rs 850 per quintal for this kharif season. Also, it approved the new pricing policy for fertilisers which is likely to reduce the cost of complex fertilisers by Rs 1,416 per tonne. Announcing the measures finance minister P Chidambaram said the MSP hike of paddy was only an ad-hoc measure as the states had divergent views on the subject. The matter has been referred to the prime minister's Economic Advisory Council (EAC) for a final solution. Earlier, the Commission for Agricultural Costs and Prices (CACP) had recommended Rs 1,000 per quintal as MSP for paddy for the 2008-09 kharif season. An official source said the government is optimistic about paddy procurement in the kharif season. "The government is hopeful of a good harvest and that is the reason they have restrained from hiking the MSP to the expected level," the official said. Under the new fertiliser subsidy scheme, the government would provide subsidy for nutrient-based, organic complex fertilisers to encourage their use in place of single-nutrient manure. Complex fertilisers contain more than one nutrient. "The prices of complex fertilisers will come down by Rs 1,416 per tonne or Rs 70 per
bag," Mr Chidambaram told reporters after the meeting of the Cabinet Committee on Economic Affairs (CCEA). There will, however, be no change in prices of urea, MoP, DAP and SSP during 2008-09, he said.
GOVT SEEKS ROOM FOR DRUG FIRMS IN JAPAN
Endorsing the Daiichi-Ranbaxy deal, the Indian government is planning to make the most of it in its bilateral trade and investment pact being negotiated with Japan. The government plans to cite the Japanese subsidiary's (read Ranbaxy) case and press the country to open the doors of its highly protected pharmaceuticals industries to the Indian companies as part of the comprehensive economic partnership agreement (CEPA). India will put up its demand in the next bilateral meeting scheduled next month in Tokyo. Speaking to ET, commerce department officials said that Japan is one of the major players in the global pharmaceutical market, but has kept its doors closed for other countries, including India, by putting in place regulations. "We have been trying to convince Japan to relax the regulations for Indian pharmaceutical companies as part of the CEPA," an official said.