Indian hikes farm support prices

India has raised its support price to farmers for common rice to 1,250 rupees per kilogram from 1,080 rupees last year, Home Minister P. Chidambaram told reporters on Thursday, as it seeks to protect its agriculture from global price swings.
India is a major producer and consumer of grains and the government sets minimum support prices (MSP) for crops to encourage its agriculture sector, which accounts for some 15 percent of the $2 trillion economy, and ensure supplies for its subsidy programmes aimed at feeding half a billion poor.
The government also raised its 2012/13 support price for soybean and corn by 33 percent and 20 percent to 2,200 rupees per 100 kg and 1,175 rupees per 100 kg respectively.
The cotton purchase price for the long staple varient has been raised by 18 percent to 3,900 rupees per 100 kg.