India raises lentils purchase price - report

NEW DELHI, Aug 29 (Reuters) - India has raised the price it pays farmers for lentils to help boost domestic output and bring down imports, the Business Standard newspaper reported on Friday.

The government has decided to increase the support price of three varieties of lentils, popularly called pulses in India, by as much as 800 rupees ($18.3) per 100 kg in 2008/09, the paper said without identifying its source.

The support price for lentils, a protein-rich cereal that is widely consumed in India, in 2007/08 was 1,700 rupees per 100 kg.

The cabinet has decided to raise the support price of summer-planted crops like corn, coarse cereals and lentils but there has been no official announcement yet, the paper said.

India consumes 18 million tonnes of lentils annually but output has never crossed 14 million tonnes, forcing the country to import from Myanmar, Tanzania, Australia, Canada and Ukraine, the Business Standard said.

Higher support price would encourage farmers to grow more, the paper said, quoting K.C. Bhartiya, president of the Pulses Import Association. ($1=43.8 rupees) (Reporting by Mayank Bhardwaj)