Wheat MSP Centre raises MSP by 2% amid farmers' protest
New Delhi/IBNS: The Centre has raised the price it will pay for new season wheat by 2% to Rs 2,015 per 100 kg.
The government in India sets up a minimum support price (MSP) to protect farmers from distress sales and to cover emergency needs.
The grains purchased by the government are used to provide to the poor at low prices.
The MSP for mustard seeds has been increased by Rs 400 to Rs 5,050 per quintal for the current crop year.
Wheat and mustard are two major Rabi crops.
The cost of production of wheat has been estimated at Rs 1,008 per quintal, the government said in a statement.
At present, the government sets up MSP for 23 crops grown in Rabi (winter) and kharif (kharif) sowing seasons.
The government raised the MSPs amid farmers' protest against the three new farm laws that they fear would give control to private companies over their produce.
The decision to raise the MSP was taken by a Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.
In all, the CCEA raised the price of six Rabi crops for the 2021-22 crop year (July-June) and 2022-23 marketing seasons.
The committee said that the MSP has been raised to encourage crop diversification as the return on the cost of production is highest for wheat, rapeseed and mustard, followed by lentil, gram, barley and safflower.
Rabi crops are sown in October, immediately after the harvest of Kharif crops.
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