The government today increased the Minimum Support Price (MSP) of wheat by Rs 80 to Rs 1,080 a quintal for the 2009-10 season to provide better remunerative prices for farmers and boost procurement.
“The MSP for wheat has been fixed at Rs 1,080 a quintal,” Railway Minister Lalu Prasad said after a meeting of the Cabinet Committee on Economic Affairs.
The MSP for wheat was Rs 1,000 per quintal for the 2008-09 marketing season. The procurement of wheat, a major rabi crop, starts from April and continues till June.
The increase in the MSP has been in line with the recommendations of the Commission for Agricultural Costs and Prices (CACP), the nodal agency that recommends remunerative prices of various crops.
MSP is the remunerative price at which the government procures from farmers to prevent them from taking to distress sale in the case of a dip in market prices. It also acts as a benchmark price for the particular crop.
The announcement of the wheat MSP was delayed this year as the issue was pending with the Election Commission for clearance. Wheat-growing states like Madhya Pradesh and Rajasthan went to polls early this month.