Govt hikes paddy MSP to Rs 850 a qtl for this year

NEW DELHI, June e 12 (Agencies): The government today announced an increase of Rs 105 a quintal in the minimum support price (MSP) of paddy at Rs 850 per quintal for this year.

Announcing the decision after the meeting of the Cabinet Committee on Economic Affairs (CCEA), the Finance Minister P Chiadambaram said this is an ad-hoc measure and the recommendation of Commission for Agricultural Costs and Prices (CACP) has been referred to the Prime Minister's Economic Advisory Council.

The CACP had recommended the paddy MSP at Rs 1,000 per quintal for 2008-09 Kharif season.

Last year, the paddy MSP was Rs 645 per quintal for common variety and Rs 675 a quintal for higher grade.

The Centre had also offered a bonus of Rs 100 per quintal over and above the MSP.

India welcomes release of ex-Bangla PM Sheikh Hasina NEW DELHI, June e 12 (Agencies): India today welcomed as a "positive step" the release of former Bangladesh Prime Minister Sheikh Hasina for medical treatment and hoped the caretaker government and political parties there would be able to reach a "constructive outcome" of their ongoing dialogue.

External Affairs Ministry said India expects to see "due process of law, basic human rights and free, fair, credible elections leading to full restoration of democracy" in Bangladesh.

"We are closely following the evolving political situation in Bangladesh," External Affairs Ministry spokesman Navtej Sarna said while commenting on the latest developments in Bangladesh where the Awami League leader was set free for a brief period after about a year-long detention on graft charges.

Sarna said the release of the 60-year-old former Prime Minister was a "positive step" by the caretaker government.

"It remains our hope that both the caretaker government and the political parties would be able to achieve a constructive outcome from the political dialogue that is currently underway," the spokesman said.

"As a close and friendly neighbour, India remains committed to seeing a peaceful, stable, prosperous and a liberal democratic Bangladesh," Sarna said.

The military-backed government released from prison the ailing Hasina for eight weeks to undergo treatment in the US.

The interim government in emergency-ruled Bangladesh has been trying to break the political deadlock in the country and engage Hasina and another detained former Premier Khaleda Zia of BNP so as to hold the proposed elections later this year.

US committed to Indo-US nuclear deal WASHINGTON, June 12 (Agencies): Maintaining that it is committed to the Indo-US nuclear deal, the US today sought to push the ball into India's court saying it was for the country's leadership to decide on the pact.

However, the US expressed confidence that the deal could be concluded in the near future in realisation of the Congressional time lines.

This administration has been firm in its support for this - this deal.

It continues to be so.

Right now we're at a situation where this is with the Indian government and literally with the Indian people.

This is a matter for them to decide and then follow through with," acting Spokesman Gonzolo Gallegos replied when asked if the Initiative is "close to dead".

"We consistently stated that we stand behind this, that we continue to support it, and that we would like to move apace in terms of proceeding with it," he added.

"I think, however, there's - you know, the bottom line is, is a reality of the congressional calendar that has to be dealt with.

We do hope that can continue and possibly conclude this in the near future," he said.

Asked whether the deal can be formalised before the end of the Bush administration the official replied, "I would be the last one - if my boss and my boss's boss are loathe to commit to date, I fear it even more than they do".