New Delhi: The central government on Tuesday increased the Minimum Support Price (MSP) of wheat and pulses by Rs 110 and Rs 200 respectively to encourage farmers to bring a major area under cultivation.
The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi approved the new MSPs of these winter sown (rabi) crops for 2017-18, informed sources told IANS.
MSP is a form of market intervention by the government to insure farmers against any sharp fall in farm prices and thus ensures adequate food grains production in the country.
Owing to bumper production, pulses, especially red gram (arhar), were sold below the MSP.
Prices of arhar had fallen below the MSP of Rs 5,050 per quintal in the key growing states of Telangana, Maharashtra and Karnataka.