The Minimum Support Price (MSP) for wheat has been set by the Central Government at Rs. 2,125 per quintal, an increase of 5.5% from the previous year. Even though the new MSP is more than the typical amount farmers earned during the height of the previous season, it is still less than the going prices. The MSP will go into effect on April 1 with the start of the rabi marketing season.
The mandi prices are higher than the new MSP at 2,313/quintal (all-India average for October 117) and 2,280/quintal (in September). Even in Uttar Pradesh and Madhya Pradesh, where the majority of grains are allegedly stored, prices are higher than 2,125.
The Government claimed that just 2.75 million tonnes (mt) of the intended 44.4 million tonnes (mt) of wheat were produced; otherwise, it was able to purchase 18.79 mt of that amount. Despite a limitation on exports, the reduced buying resulted in a constant price increase. The aim was missed, and the Government has acknowledged that prices stayed over the MSP throughout the procurement.
Although wheat has yet to be sown, the Government anticipates a normal yield due to “pretty excellent rainfall” and a typical procurement for the upcoming year. The MSP for chana (gram) has increased by the least amount among other rabi crops (2%), to Rs. 5,335/quintal, while Masur has experienced the most increase (9%), to Rs. 6,000. (lentil). The MSP for sunflower has increased by 4% to 5,650 and the MSP for mustard has increased by 8% to 5,450. The MSP for barley has increased by 6% to $1,735.