Govt nod to Rs 50 bonus for wheat

The government is believed to have cleared an agriculture ministry proposal to give a bonus of Rs 50 per quintal over and above the minimum support price of wheat, which currently stands at around Rs 1,120 per quintal for the 2011-2012 crop-marketing season that started in April.

However, a formal announcement regarding the same has been kept on hold because of state assembly elections in four states.

The cabinet committee on economic affairs considered the proposal in its meeting on April 5.

Officials said, though agriculture and consumer affairs ministries were in favour of a bonus on the minimum support price of wheat, the food ministry was opposed to the idea as it could inflate the food subsidy Bill. Procurement is also expected to be good in 2011-2012.

In this year’s Budget estimates, India’s food subsidy Bill has been pegged at Rs 60,573 crore, down from 2010-2011 revised estimates of Rs 60,600 crore.

The government has raised wheat MSP by Rs 20 a quintal to Rs 1,120 a quintal for the 2010-11 rabi marketing season (March-April).

The Food Corporation of India (FCI) plans to procure over 26 million tonnes of wheat in 2011-2012.