CACP recommends a moderate hike in wheat Minimum Support Prce for 2015-16 season
New Delhi, Sept 7:
With ample wheat stocks held with the state-owned agencies such as Food Corporation of India (FCI), the Commission for Agricultural Costs and Prices (CACP), has recommended a marginal increase of Rs 50 per quintal on Minimum Support Price (MSP) for the next rabi (winter) marketing season (2015-16).
The agriculture ministry will now consult the state governments of the key wheat growing states such as Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Rajasthan and food ministry before seeking a cabinet nod on MSP. Usually, the government agrees to the CACP recommendations.
The government had fixed a MSP of Rs 1400 per quintal for the current year’s marketing season and agencies such as FCI and state government owned agencies had purchased 28 million tonne of wheat from farmers during 2014 – 15 marketing season.
Sources said with the government agencies like FCI at present have 38 million tonne of wheat stocks at the start of this month which is far excess of buffer stocks norm, the CACP has recommended a moderate increase.
The FCI has been conducting weekly auction for selling 10 million tonne of excess wheat stocks under Open Market Sale Scheme (OMSS) to bulk buyers by March, 2015.
The FCI would commence procurement of wheat for the next season from April, 2105 and it continues up to June, 2015.
Wheat is the key Rabi or winter crop grown and its sowing begins in October and harvesting starts from April onwards.
In the 2013-14 marketing season, due to huge wheat stocks held with FCI, the CACP had recommended freezing of MSP at the previous year’s level of Rs 1285 per quintal which the UPA government did not accept and revised MSP to Rs 1350 per quintal.
For the 2014-15 rabi marketing season, the UPA government had raised the support price of wheat marginally to Rs 1,400 per quintal notwithstanding the then agriculture Minister Sharad Pawar had suggested Rs 100 per quintal hike.
The CACP recommends MSP for the around 23 agricultural commodities out of which the government agencies purchase only rice and wheat. Other MSP prices have notional values.
Wheat MSP trend
Year Rs / per quintal
2010 -11 1100
Source: FCI, marketing season (Apr-June)