Mumbai: The government is planning substantial hike in minimum price it pays to farmers for buying wheat and rice next year, agriculture minister Sharad Pawar said
The government had fixed minimum support price for wheat at Rs850 per quintal on March 15 this year when the commodity was being traded at Rs743.72 per quintal in international market, Pawar said.

"Next year also this government will give substantial rise in MSP for wheat and rice," he said.

He also defended the Rs1,100 per quintal import price of wheat saying after adding Mandi, baggage and transportation charges the price for domestic wheat also came close to Rs1,100 per quintal.

In comparison, the landed price of imported wheat in Southern India came to Rs1,200 per quintal.

Pawar said since procurement of foodgrains under MSP operations is open-ended, no targets are fixed. However, based on estimates given by state food secretaries, an estimate of 15.15 million tonnes was fixed for wheat procurement this year. Against this, only 11.104 million tonnes of wheat was procured, he said.