The Government of India today announced a 1.82 per cent (Rs20 a quintal) hike in the support price it will pay farmers for new crop wheat, information and broadcasting minister Ambika Soni said after a cabinet meeting.
The cabinet committee on economic affairs fixed the minimum support price for new crop wheat for the current rabi season at Rs1,120 per quintal, up Rs20 from Rs1,100 in the previous season.
The CCEA also approved minimum support prices (MSPs) for other rabi crops of fair average quality (FAQ) for 2010-11, to be marketed in the 2011-12 rabi season.
The MSPs have been revised on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP), Soni said.
The government, however, has kept the increase to the minimum in the face of a steady rise in food prices over the past few months.
Moreover, state agencies are reported to have procured adequate stocks over the past few months.