In order to ensure farmers get 50% more than what they spend on cultivation, the Union Cabinet has given green single to a proposal to hike the minimum support price (MSP) for Rabi crops. The government has approved Rs 105 per quintal or 6% hike in the MSP of wheat to Rs 1,840 per quintal for 2018-19 season (July-June). The MSP of wheat was Rs 1,735 per quintal in the 2017-18 crop year.
The government also increased the MSP of barley by Rs 30 per quintal to Rs 1,440 per quintal, while that of gram (Chana) by Rs 220 per quintal to Rs 4,620 per quintal. Besides, Masur's MSP has been raised by Rs 225 to Rs 4,475 per quintal, while the support price of rapeseed/mustard has been hiked by Rs 200 to Rs 4,200 per quintal. Safflower MSP has been increased by Rs 845 per quintal to Rs 4,945 per quintal.
The MSP has been increased according to the recommendations of farm advisory body Commission for Agricultural Costs and Prices (CACP) and is in line with the government's announcement to provide farmers a 50% profit over the cost of production. This move will give farmers Rs 62,635 crore additional income and help contain their simmering discontent over high input cost and low returns.