The decision will help farmers earn an additional income of Rs 62,635 crore
The government on Wednesday announced 6 per cent hike in support price of wheat at Rs 1,840 per quintal, a move that will give farmers an additional income of Rs 62,635 crore and help contain their simmering discontent over high input cost and low sales realisation.
The Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi approved higher minimum support price (MSP) for winter-sown or Rabi crops.
The decision will help farmers earn an additional income of Rs 62,635 crore, Law Minister Ravi Shankar Prasad told reporters in New Delhi after the meeting.
The decision comes within months of announcing higher price for Kharif crops, when the government fulfilled its promise of giving farmers 50 per cent more price than their cost of production.
The Cabinet has approved a Rs 105 per quintal hike in wheat MSP to Rs 1,840 for 2018-19 season, Agriculture Minister Radha Mohan Singh said.
The MSP of wheat was Rs 1,735 per quintal in the 2017-18 crop year.
Singh said the MSP for all Rabi crops is higher than the cost of production ranging from 50-112 per cent.
As per the CCEA decision, the MSP of barley has been increased by Rs 30 per quintal to Rs 1,440 per quintal, while that of gram (Chana) by Rs 220 per quintal to Rs 4,620 per quintal.
Masur's MSP has been raised by Rs 225 to Rs 4,475 per quintal, while the support price of rapeseed/mustard has been hiked by Rs 200 to Rs 4,200 per quintal.
Safflower MSP has been increased by Rs 845 per quintal to Rs 4,945.
The support price has been increased based on the recommendations of farm advisory body CACP (Commission for Agricultural Costs and Prices) and is in line with the government's announcement to provide farmers a 50 per cent profit over the cost of production.
Photograph: Amr Abdallah Dalsh/Reuters