New Delhi: Narendra Modi led Centre government today increased the purchase price of new seasons wheat by 2% to Rs 2,015 per 100 kg. The country is the world’s second largest wheat consumer and sets a price each year to protect farmers from distress sales and to cover their emergency needs. Even though the price raised by the Modi government is by 2 percent, yet it’s a lowest in the decade.
The minimum support price (MSP) for mustard seed has been raised by Rs 400 to Rs 5,050 per quintal for the current crop year.
MSP is a rate that government buys grain from the farmer Currently, the government fixes MSPs for 23 crops grown in both kharif which is summer and rabi which is winter sowing seasons.
Apparently this move comes amid the ongoing protest by farmers against three new farm laws. Farmers believes that these new laws will give control to the private firms over the agricultural produce.
Even though the centre agrees to come halfway by amending the law, the farmers don’t seem to agree on it as they demand the complete repeal of all laws.
The decision to raise the MSP was taken at a meeting of the Cabinet Committee on Economic Affairs or CCEA chaired by Prime Minister Narendra Modi.
In a statement given by the CCEA, The CCEA said the MSP has been raised to encourage crop diversification as the return to farmers over their cost of production are estimated to be highest in case of wheat, rapeseed and mustard, followed by lentil, gram, barley and safflower.
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