CACP advises hike in MSP for winter produce

Except for wheat and barley, the Commission for Agricultural Costs and Prices [CACP] has recommended to the government hike in minimum support price [MSP] for winter-sown pulses and oilseeds by up to Rs 500 a quintal. The agriculture ministry will move a cabinet note on this after seeking comments from the ministries concerned and the state governments.

A senior government official said the CACP has not recommended raising the MSP of wheat and barley for the 2013-14 rabi marketing season [April- March] in view of excess supply in the country following record production last year. It suggested keeping the MSP of wheat and barley unchanged at Rs 1,285 per quintal and Rs 980 per quintal, respectively, for the next year, he added. The Commission recommended no increase in wheat MSP because wholesale price of the grain are currently ruling below support price at Rs 1,160 per quintal, while the production cost was around Rs 1,066 per quintal in 2012-13. A similar trend was seen in barley, the official explained.

'However, the CACP has suggested the government to announce 10 per cent bonus to wheat and barley farmers if exports are banned next year,' the official said.