Cabinet okays increase in MSP of farm commodities

The government today announced a marginal increase of Rs 10 a quintal, or 1.5 per cent, in the minimum support price of wheat for the next rabi marketing season from April 2006. The new price will be Rs 650 a quintal.

The support prices of other rabi foodgrains, pulses and oilseeds have also been raised by Rs 10 to Rs 15 a quintal.

The new prices are based on the recommendations made by the Commission for Agricultural Costs and Prices and were approved by the Cabinet Committee on Economic Affairs (CCEA) in a meeting today.

The price of barley has been fixed at Rs 550 a quintal, up Rs 10, or 1.8 per cent, from last year's Rs 540 a quintal.

The prices of rabi pulses, gram and lentil (masur), have also been raised by Rs 10 a quintal each. The new prices are Rs 1,435 a quintal for gram and Rs 1,535 a quintal for masur. The increase works out to less than one per cent in both cases.

Similarly the prices of rabi oilseeds, rapeseed-mustard and safflower, have been stepped up by Rs 15 a quintal to Rs 1,715 a quintal and Rs 1,565 a quintal, respectively.

The National Agricultural Cooperative Marketing Federation (Nafed) will continue to be the nodal agency for the procurement of oilseeds and pulses. Any losses suffered by it in these operations will be compensated fully by the Centre.