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CACP asks govt not to raise wheat MSP next year

01:44 AM Jun 02, 2019 | Free Press Journal Correspondant

New Delhi : In view of higher wheat stocks and to promote production of non-grain crops, the Commission for Agricultural Costs and Prices (CACP) has suggested the government keep minimum support price of wheat unchanged at Rs 1285/quintal for the next year starting April, 2013.

For the 2012-13 marketing season (April-March), the Centre had fixed wheat MSP at Rs 1285 per quintal and this had helped achieve a record 93.90 million tonnes of wheat output.

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CACP, which advises the government on pricing policy for major farm produce, has recommended not to increase wheat MSP for the 2013-14 marketing season. It suggested keeping the MSP unchanged at Rs 1285 per quintal, a senior official told PTI.

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The reason given was that the country has huge stock of over 46 million tonnes of wheat and any increase would add to the food subsidy burden. The CACP also argued that there was a need to shift to non-grains crops and improve its supply to keep inflation under control, the official said.

The CACP recommended that only in the event of a ban on wheat exports, the government can increase its MSP by 10 per cent, the official added.

The centre has lifted a four-year-old ban on wheat exports in September 2011 and about 1.5 million tonnes of the grain has been shipped so far.

The sowing of wheat, which is the main foodgrain crop grown during the rabi (winter) season, starts from October, but the government usually declares the MSP before sowing operations to enable farmers to take informed decision.

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