Higher Minimum Support Price(MSP) announced by the Government may boost kharif crop production and supplies this year, an economist said.

In an incentive to increase production of food items, the Government has hiked the Minimum Support Price (MSP) of all kharif crops for 2010-11 as compared to last year.

"By increasing MSP, the government has given assurance to farmers. This may boost the kharif crops production and supplies," NCDEX Institute of Commodities Market and Research (NICR) economist, Ruchi Jain, told PTI here today.

The increase in prices of sugarcane will attract more planting this year, Jain said.

The country's sowing of kharif crops is also picking up and its progress may accelerate in July, she said.

"Sowing of kharif crops is picking up and its progress may accelerate after June-July, when monsoon sets in across the country," Jain said.

For pulses, area sown till date as compared to last year is higher; however, for oilseeds, the area covered is lower at 1.034-lakh hectares, she added.

In the agriculture sector, the third advance estimates of crop production released by the Ministry of Agriculture showed an upward revision as compared to its second advance estimates.

As per the third advance estimates, the crop production of rice is estimated at 89.31-million tonnes from 87.56-million tonnes, wheat at 80.98-million tonnes from 79.06 million tonnes, cotton at 228.34-lakh bales from 223.18-lakh bales of 170 kg each and sugarcane at 274.66-million tonnes from 251.27-million tonnes during 2009-10.

Due to this upward revision in the production, the growth rate in 'agriculture, forestry and fishing' sector in 2009-10 has shown a growth rate of 0.2 per cent, as against the growth rate of a (-) 0.2 per cent in the advance estimates, Jain said.

The Ministry of Agriculture has also drawn up a road-map to boost pulses production by identifying 1,000 clusters of 1,000 hectares each scattered over major pulses growing states of Gujarat, Maharashtra, Madhya Pradesh, Rajasthan, Uttar Pradesh and Andhra Pradesh.

It has lined up a series of steps including funds allocation, seeds and fertilisers supply, pesticides and irrigation to augment production through enhanced crop yield.

An allocation of Rs 837-crore has been made for pulses development.