Govt hikes wheat MSP by Rs 100/qtl; pulses by up to 550/qtl

The government on Tuesday increased the minimum support price (MSP) of wheat by Rs 100 to Rs 1,625 a quintal and pulses by up to Rs 550 per quintal to boost output of these rabi crops and check prices.

The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, has given its approval for the Minimum Support Prices (MSPs) for all rabi (winter- sown) crops of 2016-17.

The CCEA has approved Rs 100 per quintal hike in wheat MSP to Rs 1,625 per quintal for the 2016-17 rabi crop against Rs 1,525 per quintal last year.

"Wheat has been hiked by 6.6%, barley 8.2% and including bonus, gram 14.3%, masur 16.2%, rapeseed/mustard 10.4%, safflower 12.1%," 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 ptice of masur has been raised to Rs 3,950 per quintal from Rs 3,400 per quintal.

The Agriculture Ministry had proposed the support price of gram and masoor 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.

Last year, gram and masur MSPs were fixed at Rs 3,500 and Rs 3,400 per quintal, respectively, after including Rs 75 per quintal bonus each.

The MSP is the rate at which government buys the grain from farmers. Rabi crops will be marketed in 2017-18 starting April.