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Govt hikes wheat MSP by 2% for 2021-22 crop year

This come comes at a time when farmers have been protesting on various borders of the national capital, demanding repeal of the three laws and also a legal guarantee for the minimum support price. MSP is the rate at which the government buys the grain from farmers.

The Union Cabinet has approved the minimum support price (MSP) for the rabi marketing season 2022-23. The MSP for wheat was increased to Rs 2015 per quintal from Rs 1,975 per quintal, a two per cent rise.

It also hiked the MSP for mustard seed by Rs 400 to Rs 5,050 per quintal for the current crop year.

A decision in this regard was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.

This also come comes at a time when farmers have been protesting on various borders of the national capital, demanding repeal of the three laws and also a legal guarantee for MSP.

MSP is the rate at which the government buys the grain from farmers. Currently, the government fixes MSPs for 23 crops grown in both kharif and rabi seasons.

Sowing of rabi (winter) crops begins from October immediately after the harvest of kharif (summer) crops. Wheat and mustard are major rabi crops.

According to an official release, the CCEA has approved an increase in the MSP for six rabi crops for the 2021-22 crop year (July-June) and 2022-23 marketing seasons.

The cost of production of wheat is estimated at Rs 1,008 per quintal, the release said. The government procured a record wheat of over 43 million tonne during the 2021-22 rabi marketing season.

(With PTI inputs)

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