The government on Tuesday hiked the minimum support price for six crops to boost the production and income of farmers.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, decided to raise the MSPs (minimum support prices) at a meeting.
The MSP is the price the government pays farmers for their grain. The government currently sets MSPs for 23 crops farmed through the Rabi and Kharif seasons.
In October, shortly following the harvest of Kharif (summer) crops, Rabi (winter) crops are sown. The two main rabi crops are wheat and mustard.
The CCEA has approved an increase in MSPs for six rabi crops for 2022–23 (July–June) and the marketing season 2023–24.
From Rs 2,015 per quintal in the crop year 2021–2022, the MSP for wheat has increased by Rs 110 to Rs 2,125 per quintal for this year and mustard by Rs 400 to Rs 5,450 per quintal for the current crop year.
According to the announcement, wheat production costs are projected to be Rs 1,065 per quintal.