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The Commission for Agricultural Costs and Prices (CACP), a statutory body that advises the government on the pricing policy for major farm produces, has recommended increasing the minimum support price of wheat by a nominal Rs 50 to Rs 1,450 a quintal this year.
The CACP has submitted its minimum support price (MSP) proposals of wheat and other winter crops for 2014-15 rabi season to the Agriculture Ministry. The rabi crops of this year will be marketed in 2015-16 starting April.
"CACP had recommended a Rs 50 a quintal increase in the MSP of wheat for the 2014-15 rabi season. The Agriculture Ministry is in the process of seeking views from the state governments and other concerned departments," a senior Agriculture Ministry official told PTI.
After taking views, a final proposal will be moved for the Cabinet's approval, the official added.
Wheat is the main crop grown in the rabi (winter) season. Wheat's sowing begins in October and harvesting starts from April onwards.
The MSP is the rate at which government buys the grain from farmers. The government procures wheat during April-June.
For the 2013-14 rabi season, the previous government had raised the support price of wheat marginally by Rs 50 per quintal at Rs 1,400 per quintal even as then Agriculture Ministry Sharad Pawar had pitched for Rs 100 per quintal hike.
For the 2012-13 season, the CACP had recommended freezing of wheat MSP at Rs 1,285 a quintal in the wake of huge wheat stocks with the government. However, the decision had to be reviewed due to strong opposition and the government later fixed the wheat MSP at Rs 1,350 a quintal.
Wheat is normally sown from November and the crop harvested from April onwards. The country had harvested a record 95.91 million tonnes of wheat crop last year.
