India raises procurement prices for staple crops

Published 2024년 6월 21일

Tridge summary

The Indian government has increased the state procurement prices for several crops, including rice, soybeans, corn, and cotton, with the most significant increases being in corn and cotton. This move aims to offset the rising cost of production and encourage local farmers to boost productivity. The change is also expected to support the world's largest food support program, which provides free grain to approximately 800 million people. The increase in procurement prices could lead to a rise in the cost of Indian rice for international buyers, prompting the Rice Exporters Association of India to recommend reducing the export duty from 20% to 15% to lessen the impact.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The Government of India from June 20 increased state procurement prices for a number of crops such as rice, soybeans and cotton. This was announced by the Minister of Information of India Ashwini Vaishnau. The country annually announces support prices at which it will make purchases from farmers. As noted, the next increase is due to the rising cost of production, as well as the need to stimulate local farmers to increase productivity. Specifically, the purchase price of soybean has been increased by 6.4%, from Rs. 4,600 to Rs. 4,892 ($59) per 100 kg, the price of corn has been increased by 6.5%, from Rs. 2,090 to Rs. 2,225 ($27), rice by 5.4%, from Rs. 2,183 to Rs. 2,300, and cotton by 7.6%, from Rs. 6,620 to Rs. 7,121 per 100 kg. The Indian government increases the purchase prices of staple foods every year to build up stocks for the world’s largest food support program for the population, which provides free 5 kg of ...

Source: UkrAgroConsult