New Delhi: The government on Tuesday increased the minimum support price (MSP) of wheat by Rs110 to Rs1,735 a quintal and of pulses by Rs200 per quintal to help boost the output of these crops and check prices, people familiar with the matter said.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the MSPs of all rabi (winter-sown) crops for 2017-18.
MSP is the rate at which government buys grain from farmers. According to the people, the CCEA approved Rs110 per quintal hike in wheat MSP to Rs1,735 per quintal for the 2017-18 rabi crop, up from Rs1,625 per quintal last year.
To encourage the cultivation of gram and masoor, their MSPs have been raised by Rs200 per quintal each to Rs4,200 and Rs4,150. Among oilseeds, rapeseed/mustard and safflower seed MSP has also been increased substantially, the people said, adding that the support prices are in line with the recommendations of the Commission for Agricultural Costs and Prices.
Wheat is the main rabi crop, sowing of which will begin from this month. The crop will be marketed from next year April onwards.