 "With polls in mind NDA announces biggest increase in wheat MSP")
The increase which in percentage terms translates into a 6.6 per cent hike is more than the RS 50 and 75 per quintal rise in wheat MSPs announced in the last two years.
The MSP's of chana has been raised by up to Rs 500 per quintal and masur by Rs 550 per quintal, while that of mustard has been increased by Rs 350 per quintal.
Mustard is the biggest oilseeds grown during the rabi season.
"Wheat has been hiked by 6.6 per cent, barley 8.2 per cent and including bonus, gram 14.3 per cent, masur 16.2 per cent, rapeseed/mustard 10.4 per cent, safflower 12.1 per cent," an official spokesperson said.
"Further, to incentivise cultivation of pulses and oilseeds, a bonus on these crops over MSP has been announced," he added.
Gram MSP has been hiked to Rs 4,000 per quintal, including bonus, from Rs 3,500 per quintal in the previous year, while support price of masur has been raised to Rs 3,950 per quintal from Rs 3,400 per quintal.
"The hefty increase in wheat MSP is clearly with an eye on the coming state elections in UP and Punjab, two of main growing states. However, percentage wise the hike in just of 6.6 per cent which is lower than dearness allowance that many government employees get and won't be enough to cover the costs," said Sudhir Panwar, President of Kisan Jagriti Manch and member of UP Planning Commissio told Business Standard.
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He said in case of MSP of chana (gram) and masur (lentils), the increase of Rs 500 per quintal and 350 per quintal is less than the prevailing market rates. The MSP of chana after today hike is Rs 40 per kg, while the prevailing market rate of around Rs 110-130 per kg, while that of masur is around 39.50 per kg, while the prevailing market rate is around Rs 75-80 per kg.
The Agriculture Ministry had proposed the support price of gram and masur at Rs 4,000 per quintal each, including bonus, for the rabi season to boost domestic output, reduce the country's dependence on imports, and check prices.
The government is targeting 20.75 million tonnes of pulses production this year on account of good monsoon. It expects 13.5 mt of output from the ensuing rabi season while 8.7 mt is estimated to have been harvested in the just-completed kharif season.
Wheat production in 2016-17 as per official estimates is around 94 million tonnes, while traders said it is below 90 million tonnes because of consecutive drought.
Food Corporation of India (FCI) will be the designated central nodal agency for price support operations for cereals, pulses and oilseeds.
To supplement the efforts of FCI, the National Agricultural Cooperative Marketing Federation of India Limited (NAFED), National Cooperative Consumers' Federation (NCCF), Central Warehousing Corporation (CWC) and Small Farmers Agri - Business Consortium (SFAC) may also undertake procurement of oilseeds and pulses as per their capacity.