Govt hikes wheat MSP by Rs 50
Thursday, 30/10/2014
http://epaper.dailypostindia.com/Details.aspx?id=117621&boxid=64104&uid=&dat=2014-10-30
New Delhi: The government on Wednesday raised the minimum support price (MSP) for wheat by a nominal Rs 50 to 1,450 a quintal to encourage farmers to cover more area under the crop in the ongoing rabi season.
Wheat MSP stood at Rs 1,400 per quintal last year.
The sowing of wheat begins in October and harvesting starts from April onwards. The government procures wheat from farmers during April-June.
“The Cabinet Committee on Economic Affairs (CCEA) has approved the MSP for rabi crops of 2014-15 season to be marketed in 2015-16,” an official statement said.
The support price of rabi crops has been increased in the range of Rs 50-125 per quintal as recommended by the government’s advisory body Commission for Agriculture Costs and Prices (CACP), it said.
“This will help in higher production through assured remunerative prices to the farmers,” the statement added.
The rabi crops whose support prices have been hiked include barley, gram, masur and mustard seed.
To boost pulses production, the CCEA has hiked the support price of masur dal by Rs 125 per quintal to Rs 3,075 per quintal, while gram MSP has been raised by Rs 75 per quintal to Rs 3,175 for 2014-15.
The support prices of mustard seed and safflower seed have been increased by Rs 50 per quintal each to Rs 3,100 and Rs 3,050, respectively.
Similarly, the MSP of barley has been increased by Rs 50 per quintal to Rs 1,150 for this year, the statement said.
In the case of wheat, the government buys the grain at the MSP, while for the rabi crops it intervenes in the market when the prices fall below the support price.
