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Govt. unveils 2.6% hike in wheat MSP amid protests

Last year, MSP for wheat had seen a 4.6% increase.  

In the earliest announcement of minimum support prices in at least a decade, Agriculture Minister Narendra Singh Tomar told the Lok Sabha that the Cabinet had approved MSP hikes for six crops, including a 2.6% increase in the rate for wheat. Last year, MSP for wheat had seen a 4.6% increase.

This comes amid vehement protests by farmers, who fear that the new agricultural marketing reforms would result in the phasing out of MSP and public procurement. The MSP is the rate at which the government purchases crops from farmers, and is based on a calculation of at least one and a half times the cost of production incurred by farmers.

The MSP for wheat will be increased by 2.6% or Rs. 50 per quintal to Rs. 1,975 per quintal for the upcoming rabi or winter crop season, according to the decision taken by the Cabinet Committee on Economic Affairs on Monday. The MSP rates were also hiked for five other winter crops — barley, gram, masur dal, safflower, and rapeseed and mustard. For more than a decade, MSPs for the rabi season have been announced in October or November, as winter planting begins.