The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the hike in minimum support prices (MSP) of wheat by Rs 105 per quintal, masaur Rs 225,/quintal, safflower by Rs 845/quintal, and gram by Rs 220/quintal. The decision will give farmers an opportunity to earn an additional income of Rs. 62,635 crore.
The announcement for hike in MSP of Rabi crops for 2018-19 came a day after farmers ended their 10-day long Kisan Kranti Yatra and clashed with police at the UP Gate-Delhi border demanding higher MSP prices and uniformity in loan waivers.
Cabinet statement said, “It will give additional return to the farmers of Rs 62,635 crore by way of increasing MSP of notified crops to at least 50 per cent over cost of production and will aid in doubling farmers’ income.”
Agriculture Minister Radha Mohan Singh said that the MSP for all Rabi crops is higher than the cost of production ranging from 50-112 per cent.
The MSP has been raised based on the recommendations of farm advisory body, the Commission for Agricultural Costs and Prices and is in line with the government’s announcement to provide farmers a 50 per cent profit over the cost of production.