: Govt hikes wheat MSP by Rs 110 to Rs 2,125 per quintal #finance #StockMarketNEWS #Business MSP for gram has been increased by Rs 105 to Rs 5,335 per quintal New Delhi: The government on Tuesday

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Govt hikes wheat MSP by Rs 110 to Rs 2,125 per quintal #finance #StockMarketNEWS #Business
MSP for gram has been increased by Rs 105 to Rs 5,335 per quintal

New Delhi: The government on Tuesday hiked the minimum support price (MSP) of six rabi crops by up to 9%, with `110 per quintal increase for wheat crop to boost domestic production and farmers’ income.

Wheat MSP has been raised by 5. 45% to `2,125 per quintal from `2,015 per quintal to encourage more area under the crop amid tight government stock position owing to low procurement, fall in production and higher exports.

The decision to increase the MSP of rabi crops for 2023-24 marketing year was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi, Information and Broadcasting Minister Anurag Thakur said in a media briefing.

The cost of production of wheat is estimated at `1,065 per quintal. The government has ensured a 100% return over the cost of production in the case of wheat and mustard, he

said.

Whereas in the other four rabi crops, it is between 50 to 85% return over the cost of production, he added.

Asked if the hike in MSP of rabi crops would lead to food inflation, the minister said price rise in India is under control in comparison to other countries. According to an official release, the support price of barley was hiked by `100 to `1,735 per quintal for the 2022-23 crop year from `1,635 per quintal in the previous year.

Among pulses, the MSP for gram has been increased by `105 to `5,335 per quintal from `5,230, while for lentil (Masur), it was hiked by `500 to `6,000 from `5,500 per quintal.

In the case of oilseeds, the government has increased the MSP for mustard seed by `400 to `5,450 per quintal for the 2022-23 crop year from `5,050 in the previous year. The MSP for safflower has been raised by `209 to `5,650 per quintal from `5,441.

The absolute highest increase in MSP has been approved for lentil (Masur) by Rs 500 per quintal, followed by rapeseed and mustard at Rs 400. In percentage terms, MSP of masur has been enhanced the maximum at 9. 09 per cent.

The MSP is the rate at which the government buys grain from farmers. Currently, the government fixes MSP for 23 crops grown in both kharif and rabi seasons.

Sowing of rabi (winter) crops begins in October, immediately after the harvest of kharif (summer) crops. Wheat and mustard are major rabi crops.

In case of wheat, the government decided to hike the MSP by Rs 110 per quintal as against Rs 40-50 per quintal in the last two years, keeping in mind the need to raise the domestic production amid falling government stocks.

With prices coming under strain owing to fall in domestic wheat output and over 50 per cent fall in government procurement at 19 million tonnes in 2022-23 marketing year, the government had to ban overseas sale of the grain in May.