Commission for Agricultural Costs and Prices (CACP) recommended that the government should maintain minimum support price (MSP) of wheat unchanged at Rs 1285/quintal for the next year April 2013. CACP, which advises the government on pricing policy for major farm produce, has recommended not increasing wheat MSP for the 2013-14 marketing season.
The centre had fixed wheat MSP at Rs 1285/quintal which had helped to attain a record 93.90 million tonnes of wheat output. The country has huge stock of over 46 million tonnes of wheat and any enhancement in price would add to the food subsidy burden. The CACP also argued that there was a need to shift to non-grains crops and recover its supply to keep inflation under control.
The CACP recommended that only if the wheat exports are banned, the government can raise its MSP by 10%. The centre had lifted a 4 year old ban on wheat exports in September 2011 and about 1.5 million tonnes of the grain has been exported so far.
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