Farmers' income will increase to Rs 62,635 cr, says govt as it hikes MSP of Rabi crops
During the Cabinet meeting, chaired by Prime Minister Narendra Modi, the government approved a Rs 105 per quintal hike in the minimum support price of wheat to Rs 1,840 per quintal for 2018-19 season.
Grappling with discontent within the agriculture sector, the Modi government on Wednesday hiked minimum support price of Rabi crops.
During the Cabinet meeting, chaired by Prime Minister Narendra Modi, the government approved a Rs 105 per quintal hike in the minimum support price of wheat to Rs 1,840 per quintal for 2018-19 season. The MSP of wheat was Rs 1,735 per quintal in the 2017-18 crop year.
"By increasing the MSP today the farmers of India will have an additional income to the tune of Rs 62,635 crore," Union Minister Ravi Shankar Prasad told reporters during a press conference after the Cabinet meeting.
The MSP has been increased according to the recommendations of farm advisory body CACP and is in line with the government's announcement to provide farmers a 50 per cent profit over the cost of production.
The decision comes within months of announcing higher price for Kharif crops, when the government fulfilled its promise of giving farmers 50 per cent more price than their cost of production.