Increase in Wheat MSP

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Commission for Agricultural Costs and Prices recommends increase wheat MSP from previous
The Commission for Agricultural Costs and Prices (CACP), a statutory body that advises the government
on the pricing policy for major farm produces, has recommended increasing the minimum support price of
wheat by a nominal Rs 50 to Rs 1,450 a quintal this year.
The CACP has submitted its minimum support price (MSP) proposals of wheat and other winter crops for
2014-15 rabi season to the Agriculture Ministry. The rabi crops of this year will be marketed in
2015-16 starting.
Wheat is the main crop grown in the rabi (winter) season. Wheat's sowing begins in October and
harvesting starts from April onwards.
The MSP is the rate at which government buys the grain from farmers. The government procures wheat
during April-June.
For the 2012-13 season, the CACP had recommended freezing of wheat MSP at Rs 1,285 a quintal in the
wake of huge wheat stocks with the government. However, the decision had to be reviewed due to strong
opposition and the government later fixed the wheat MSP at Rs 1,350 a quintal.
Wheat is normally sown from November and the crop harvested from April onwards. The country had
harvested a record 95.91 million tonnes of wheat crop last year.