JOIN USRising inflation has forced the government to go in for a moderate hike of Rs 50 per quintal in the minimum support price (MSP) of wheat.
The Cabinet Committee on Economic Affairs, at a meeting chaired by Prime Minister Manmohan Singh on Thursday, fixed the MSP for wheat at Rs 1,400 per quintal, an increase of Rs 50.
The Agriculture Ministry had suggested increasing the MSP by Rs 100, while the Commission for Agriculture Costs and Prices had recommended fixing the MSP at Rs 1,400 per quintal.
The Cabinet Committee on Economic Affairs has also approved the MSP of other rabi crops for 2013-14 crop year (July-June) to be marketed in the 2014-15.
The increase in wheat MSP is likely to lead to a rise in the government’s food subsidy bill in the next fiscal.