Wheat MSP up by Rs 110 per quintal, pulses by Rs 200

New Delhi: In a major decision, the government on Tuesday increased the minimum support price (MSP) of wheat by Rs110 and of pulses by Rs 200 per quintal to encourage farmers to increase their cultivation area.

The move is aimed at boosting the output of wheat and pulses and check prices.

The decision in this regard was taken at the Cabinet Committee on Economic Affairs (CCEA) meeting which was chaired by Prime Minister Narendra Modi.

The cabinet has approved the MSPs of all rabi (winter-sown) crops for 2017-18. With the increased MSP of Rs 110, the new MSP of wheat stands at Rs1,735 per quintal, which was Rs 1,625 per quintal last year.

To encourage the cultivation of gram and masoor, their MSPs have been raised by Rs200 per quintal each to Rs 4,200 and Rs 4,150. Among oilseeds, rapeseed/mustard and safflower seed MSP has also been increased substantially, the people said, adding that the support prices are in line with the recommendations of the Commission for Agricultural Costs and Prices.

Wheat is the main rabi crop, sowing of which will begin from this month. The crop will be marketed from next year April onwards.

Commenting on the decision, a Maharashtra-based farmer Ganesh Nanote said, "Increase in the MSP of crops helps farmers to decide the cultivation area. The decision would definitely help farmers to get better price of their produce."

Hailing the decision, Bullu Prasad, a farmer from Bihar, said, "Its good that MSP on rabi crops has been increased, but at the same, the government should also ensure that every farmer sell their produce at MSP prince, which is not happening in Bihar."