New Delhi, The government on Wednesday hiked the minimum support price for wheat by Rs 40 to Rs 2,015 per quintal and for mustard seed by Rs 400 to Rs 5,050 per quintal for the current crop year.
A decision in this regard was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.
MSP (Minimum Support Price) is the rate at which the government buys the grain from farmers. Currently, the government fixes MSPs for 23 crops grown in both kharif and rabi seasons.
Sowing of rabi (winter) crops begins from October immediately after the harvest of kharif (summer) crops. Wheat and mustard are major rabi crops.
According to an official release, the CCEA has approved increase in the MSP for six rabi crops for the 2021-22 crop year (July-June) and 2022-23 marketing seasons.
Wheat MSP has been increased by Rs 40 to Rs 2,015 per quintal for this crop year from Rs 1,975 per quintal in the 2020-21 crop year.
The cost of production of wheat is estimated at Rs 1,008 per quintal, the release said.
The government procured a record wheat of over 43 million tonne during 2021-22 rabi marketing season, as per the official PTI