Government likely to raise minimum support price for wheat by Rs 50 per quintal

NEW DELHI: The government is likely to raise the minimum support price (MSP) for wheat by Rs 50 to Rs 1,450 per quintal, to encourage farmers to cover more area under the staple crop in the ongoing rabi or winter-sown season. It may also increase the MSP for other crops ranging from mustard to maize by 4-5 per cent, said officials with knowledge of the matter.

A decision on the new prices will be made by the Cabinet post Diwali . The hikes are likely to be similar to the previous year, and in tandem with the recommendations of the Commission for Agricultural Costs and Prices, which advises the government on the pricing policy for major farm produces.

MSP is the rate at which the government purchases farm produce-.Meanwhile, political parties and farmer organisations in the major wheat-growing states of Punjab, Haryana, UP and Bihar have started demanding the government to set higher prices. Punjab chief minister Parkash Singh Badal is expected to meet Prime Minister Narendra Modi to seek remunerative MSP to farmers’ for their produce. In an earlier statement, Badal said the farm sector was going through a crisis and unless the Union government takes timely action, it could jeopardise the nation’s food security.

According to an official at the food and consumer affairs ministry, the government has maintain a balance between offering remunerative rates to farmers and controlling food inflation. “The priority is to keep farmers’ interests safe. However, there will be no sharp increase in prices,” he said.

Farmers’ organisations say the wheat price should cross Rs 1,500 a quintal, because the cost too has increased. “In its manifesto, the BJP has said that it will ensure a minimum 50 per cent profit to farmers over the cost of production. We expect them to fulfil it,” said Sudhir Panwar, president of Lucknow’s Kisan Jagriti Manch.