After Farmers March To Delhi, Cabinet Hikes Wheat MSP By 6 Percent

Farmers marched to Delhi on Tuesday demanding higher prices for crops, loan waiver and free power for irrigation.

Image used for representational purpose.

(Photo: Reuters)

The government approved a six percent increase in the support price of wheat a day after thousands of farmers marched to Delhi demanding a hike.

The Cabinet, in a meeting chaired by Prime Minister Narendra Modi, approved a Rs 105 hike in the minimum support price (MSP) of wheat to Rs 1,840 per quintal for the 2018-19 season, Union agriculture minister Radha Mohan Singh said after the meeting in New Delhi on Wednesday, 3 September.

Farmers marched to the National Capital on Tuesday demanding higher prices, loan waiver and free power for irrigation. The protest had turned violent when the police deployed water canons and barricades to prevent them from entering Delhi.

On Wednesday, the MSP for rabi crops (October-March) was also increased, according to the recommendations of the Commission for Agricultural Costs and Prices.

The government, in the Union Budget, had promised a support price that is at least 50 percent higher than the cost of production. There has, however, been a debate on what’s included in the cost.

According to Singh, the MSP for all rabi crops is now higher than the cost of production ranging from 50-112 percent.

Law Minister Ravi Shankar Prasad, who addressed the media along with Singh, said the decision will help farmers earn an additional income of Rs 62,635 crore.

According to the ministers:

• The MSP of barley has been increased by Rs 30 to Rs 1,440 per quintal.
• The support price of gram (chana) has been increased by Rs 220 to Rs 4,620 per quintal.
• Masur’s MSP has been raised by Rs 225 to Rs 4,275 per quintal.
• 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.

(This story was originally published on BloombergQuint.)