The Cabinet Committee on Economic Affairs (CCEA) has hiked the Minimum Support Price (MSP) of wheat and pulses to boost the output of these rabi crops and check prices.
The MSP of wheat was hiked by 100 rupees per quintal for the 2016-17 rabi crop. The procurement cost of wheat will be 1,625 rupees per quintal against 1,525 rupees per quintal last year. The support price on Barley has been increased to 1,325 rupees from 1,225 rupees per quintal.
MSP on Pulses
- Masur: It has been raised to 3,950 rupees per quintal from 3,400 rupees.
- Mustard and safflower: MSP have been hiked to 3,700 rupees per quintal each.
- Gram: It has been raised to 4,000 rupees per quintal including bonus, from 3,500 rupees per quintal.
To incentivise cultivation of pulses and oilseeds, CCEA also announced a bonus on these crops over and above MSP.
What is Minimum Support Price (MSP)?
MSP is a form of agricultural market intervention undertaken by the Union Government in order to insure agricultural producers are protected against any sharp fall in farm prices. It is announced for certain crops by the Union Government prior to the sowing season. The prices are decided by CCEA on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP).