Agriculture Ministry proposed a Hike of Rs 115 per quintal in MSP of Wheat
Economy Current Affairs 2011. Agriculture Ministry proposed a hike of Rs 115 per quintal in MSP of wheat to Rs 1285 per quintal
The Agriculture Ministry on 20 October 2011 proposed a hike of Rs 115 per quintal in the minimum support price (MSP) of wheat to Rs 1285 per quintal to cover rising farm input cost and encourage farmers to increase acreage.
The ministry circulated a CCEA note among various ministries recommending Rs 1285 per quintal as MSP for wheat for the 2012-13 marketing year begining 1 April 2012.
Wheat's support price for 2011-12 was Rs 1170 per quintal, including a bonus of Rs 50 per quintal.
The government announced the support price for more than 20 crops just before the sowing season. The government buys wheat and paddy from farmers at the MSP to ensure assured returns to growers. The MSP also acts as benchmark price for the market.
The Ministry recommended a significant hike in wheat MSP in view of rising input cost of labour, electricity, diesel and fertilisers.
Since the UPA government came into power in 2004, the MSP of wheat has been raised from Rs 630 per quintal to Rs 1170 per quintal.
Country’s wheat production touched an all-time of 85.93 million tonnes in the 2010-11 crop year. According to experts, higher support price played a big role in the record wheat output.