The Modi-government Wednesday hiked the Minimum Support Price (MSP) on Rabi crops from 50% to 109% for marketing season 2020-21. This is being seen as a big pro-farmer move by the government in its bid to increase farmers' income.
The MSP for wheat is raised by Rs 85 to Rs 1,925 a quintal and for pulses by up to Rs 325 per quintal to Rs 4,800.
This decision was taken at the meeting of the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi.
The CCEA has approved MSPs of all rabi (winter-sown) crops for the 2019-20 crop year (July-June) as recommended by the government's farm price advisory body CACP, the sources added.
MSP is the rate at which the government buys grains from farmers. According to sources, the CCEA has approved Rs 85 per quintal hike in wheat MSP to Rs 1,925 per quintal for the 2019-20 rabi crop, up from Rs 1,840 per quintal last year.
Barley MSP has also been increased by Rs 85 to Rs 1,525 per quintal for the current year from Rs 1,440 per quintal last year.
To encourage cultivation of pulses, the support price of masoor has been increased by Rs 325 to Rs 4,800 per quintal for this year from Rs 4,475 per quintal last year.
Similarly, the MSP of gram has been hiked by Rs 255 to Rs 4,875 per quintal for this year from Rs 4,620 per quintal last year.
Among oilseeds, rapeseed/mustard MSP has been increased by Rs 225 to Rs 4,425 per quintal for 2019-20 rabi crop from Rs 4,200 per quintal during 2018-19.
The minimum support price of safflower has been hiked by Rs 270 to Rs 5,215 per quintal for the current year from Rs 4,945 per quintal last year.
Wheat is the main rabi crop, sowing of which will begin next month. The crop will be marketed from next April onwards.
(With PTI inputs.)