New Delhi, Aug 20 - With drought declared in half of India, the government said Thursday it would 'respond appropriately' to mitigate the situation and would increase the minimum support price (MSP) of cereals and pulses to help farmers.

'We are taking it step by step. It is an evolving situation and the government will respond appropriately,' Home Minister P. Chidambaram said, while announcing that the support price for paddy has been hiked by Rs.100 per quintal and that for pulses by Rs.300 per quintal.

He was briefing reporters here after a meeting of the cabinet committee on economic affairs presided over by Prime Minister Manmohan Singh.

The support price for common paddy will now go up to Rs.950 per quintal from Rs.850, while that for the A grade variety will be Rs.980, up from Rs.880, Chidambaram said.

'The government has already declared its intention to take every step to mitigate the situation. MSP is one forum for rewarding and giving relief to farmers,' he added.

The minimum support price per quintal for tur dal has gone up from Rs.2,000 to Rs.2,300, for moong dal from Rs.2,520 to Rs.2,760 and for sesame from Rs.2,750 to Rs.2,850.

India had logged record foodgrain production during 2008-09 (July-June), which was estimated at 233.