There is a possibility of less increase in the support price of Rabi season crops

07-Oct-2024 04:47 PM

New Delhi. This time the Central Government is likely to increase the Minimum Support Price (MSP) of Rabi season crops of 2020-25 - wheat, barley, gram, lentil and mustard by less than in the past years. According to rough estimates, keeping in mind the availability in the market and the prevailing prices in the international market, the government can increase the MSP of wheat by about 5 percent to Rs 2400 per quintal, which is coming to the support price of Rs 2275 per quintal for the 2023-24 season and the situation of supply and availability of wheat in the domestic division remains smooth to a large extent. On the other hand, the price of wheat is going soft in the global market. All these factors can affect the determination of MSP of wheat. It is known that the minimum support price of wheat was increased by Rs 150 per quintal during the 2023-24 season as compared to 2022-23. Recently, the Union Food Secretary had ruled out the possibility of starting the sale of wheat through weekly e-auction to bulk buyers from the stock of Food Corporation of India (FCI) under the Open Market Sale Scheme (OMSS), saying that wheat production in the country increased to a peak of 1132.80 lakh tonnes during the 2023-24 season, which was 2.4 percent more than the production of the 2022-23 season. The Food Corporation currently has a stock of 238.50 lakh tonnes of wheat, which is more than the minimum required buffer stock of 205.20 lakh tonnes. Although the government has allocated 25 lakh tonnes of wheat for sale under OMSS, its sale will be started only when it is considered necessary to do so.

The Union Cabinet is expected to announce the minimum support price of Rabi crops soon based on the recommendation of the Commission for Agricultural Costs and Prices (CACP). There may also be a general increase in the support price of pulses and oilseeds crops. The MSP of these crops has already been increased substantially.