The government announced 6 per cent hike in support price of wheat at Rs 1,840 per quintal, a move that will give farmers an additional income of Rs 62,635 crore and help contain their simmering discontent over high input cost and low sales realisation.
The Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi approved higher minimum support price (MSP) for winter-sown or Rabi crops.
The decision will help farmers earn an additional income of Rs 62,635 crore, Law Minister Ravi Shankar Prasad told after the meeting.
The decision comes within months of announcing higher price for Kharif crops, when the government fulfilled its promise of giving farmers 50 per cent more price than their cost of production.
The Cabinet has approved a Rs 105 per quintal hike in wheat MSP to Rs 1,840 for 2018-19 season, Agriculture Minister Radha Mohan Singh said.
The MSP of wheat was Rs 1,735 per quintal in the 2017-18 crop year.