Government hikes wheat minimum support price by Rs 50 to Rs 1,450 per quintal

NEW DELHI: The government has raised minimum support price (MSP) for wheat by Rs 50 to Rs 1,450 per quintal to encourage farmers to plant more of the staple in the ongoing rabi or winter-sown season. It also increased the MSP for other crops ranging from mustard to barley and safflower by Rs 50 a quintal.

The Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi approved the minimum support prices for rabi crops in the 2014-15 season to be marketed in 2015-16 on Wednesday.

A week ago, ET had reported that the increase will amount to 4-5% more than the previous year at a time when government is trying to control inflation and keep a check on rising food prices. The increases are based on the recommendations of the CACP. "This will help in higher production through assured remunerative prices to the farmers," said an official statement.

The MSP ensures that farmers are paid a minimum price, thereby preventing distress sales. Rabi planting traditionally begins in October with the sowing of wheat, maize, chana, mustard and potato.