Centre hikes Minimum Support Price on rabi crops amid protests on Farm Bills

The Government of India increased the minimum support prices for six rabi crops following protests by farmers and lawmakers over apprehensions that the new farm bills passed by the government would end the MSP 

The Cabinet Committee on Economic Affairs has increased the MSP for wheat by Rs 50 per quintal to Rs 1,975, Agriculture Minister Narendra Singh Tomar said in Parliament on September 21.

Narendra Singh Tomar said, "MSP was offered to farmers before, is in force now, and will remain in force in the future and government procurement will continue," adding that the government has not only increased MSP but also increased procurement at MSP to ensure remunerative prices to farmers. 

The announcement comes hours after Prime Minister Narendra Modi said that MSP for farm products will continue under the new legislations, allaying farmers concerns that the practice may come to an end following the passage of the bills.

MSP is a price at which the government procures crops from farmers, when the market prices fall below it due to high supplies.

The MSP of wheat has been hiked by Rs50 per quintal to Rs1, 975 per quintal, union minister Ravi Shankar Prasad said. MSP of gram has been hiked at an annual growth rate of 8.3%, MSP of rapeseed and mustard has been hiked by 7 %, and that of barley has been increased by 5.7%.

(With inputs from agencies)