MSP hike for wheat, other Rabi crops likely at Cabinet meeting today

The government is likely to announce an increase in the minimum support price (MSP) of wheat and other Rabi crops for the year 2020-21, a month ahead of schedule, as protests continue over its three farm bills.

The central government could make a decision to raise the MSP at the cabinet meeting scheduled on September 21, reported CNBC Awaaz.

According to the report, there could be an announcement of MSP hike of wheat by Rs 85 per quintal.

The hike is likely to be based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), which has recommended the MSP of wheat at Rs 1,925 per quintal. Last year in 2019-20, the MSP of wheat was at Rs 1,840 per quintal. This means that the MSP of wheat will be increased by Rs 85 per quintal, said the report.

A similar increase in the MSP of other Rabi or winter crops has also been recommended by CACP.

The biggest hike is expected in lentils, as the CACP has recommended an increase of 3.7 percent in the lentils.

The report has surfaced amid the strong protest against the three farm bills brought by Centre. Of these two -- The Farmer's Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020, and the Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020 – have been passed by the Parliament. The Essential Commodities (Amendment) Ordinance, 2020 is yet to get the nod in Rajya Sabha.