The government on Tuesday hiked the minimum support prices for six crops to boost the production and income of farmers.
The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi decided to increase the MSP (Minimum Support Price) in a meeting.
MSP is the price the government pays to farmers for their grains. The government currently fixes the MSP for 23 crops cultivated through the Rabi and Kharif seasons.
In October, immediately after the harvesting of Kharif (summer) crops, Rabi (winter) crops are sown. The two main Rabi crops are wheat and mustard.
CCEA has approved increase in MSP for six rabi crops for 2022-23 (July-June) and marketing season 2023-24.
From Rs 2,015 per quintal in the crop year 2021-2022, MSP for wheat has increased by Rs 110 to Rs 2,125 per quintal for this year and mustard from Rs 400 to Rs 5,450 per quintal for the current crop year.
According to the announcement, the cost of wheat production is estimated to be Rs 1,065 per quintal.