Cabinet hikes wheat MSP by Rs 105/quintal

New Delhi: The decision to approve a substantial hike in minimum support price (MSP) of rabi crops a few months before Lok Sabha poll in 2019, may reap rich political dividends for the government led by Prime Minister Narendra Modi.

According to Union Agriculture Minister Radha Mohan Singh, the government has taken a historic decision by announcing a 6 per cent hike in the support price of wheat at Rs 1,840 per quintal for the 2018-19 crop season from existing Rs 1,735

per quintal in the previous crop season.

"The decision will give farmers an additional income of Rs 62,635 crore, which would help in containing their discontent over high input costs and low sales realisation," the minister said.

The Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi approved the higher minimum support price (MSP) for rabi crops mainly grown in the winter season.

The decision comes within months of the government announcing a higher price for kharif crops, fulfilling its promise of giving farmers 50 per cent more price than their cost of production.

"The additional income of Rs 62,635 crore to farmers from the increased MSP on wheat, barley, channa, masoor, rapeseed/mustard and sunflower oilseed would help in doubling the income of farmers," Singh said while addressing reports about the cabinet decisions along with Union Minister Ravi Shankar Prasad.

The support price has been increased on the recommendations of farm advisory body CACP (Commission for Agricultural Costs and Prices) and is in line with the government's announcement to provide farmers with a 50 per cent profit over the cost of production.