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Business News/ Opinion / Online-views/  Govt promises hike in MSP for wheat, rice in 2008
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Govt promises hike in MSP for wheat, rice in 2008

Govt promises hike in MSP for wheat, rice in 2008

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PTI

New Delhi: Agriculture Minister Sharad Pawar has promised a substantial hike in minimum price which the government pays to farmers for buying wheat and rice in 2008.

Replying to supplementaries during Question Hour, Pawar said the Government fixed the minimum support price for wheat at 850 per quintal on 15March this year when the commodity was traded at 43.72 per quintal in the international market.

“Next year also this government will give substantial rise in MSP for wheat and rice," he said, while defending the MSP for wheat that was lower than the 1100 per quintal price at which India imported wheat saying after adding mandi, baggage and transportation charges the price for domestic wheat came close to 100 per quintal. In comparison, landed price of imported wheat in southern India came to 1200 per quintal.

Imports were resorted as wheat procurements by government agencies were barely sufficient to meet Public Distribution System (PDS) requirement and a buffer was needed to meet emergencies. “It is a question of our food security which cannot be compromised with."

Pawar said since procument of foodgrains under Minimum Support Price (MSP) operations carried out by Government agencies is open-ended, no targets are fixed. However, based on estimates given by State Food Secretaries, an estimate of 15.15 million tons was fixed for wheat procurement this year.

Against this, only 11.104 million tons of wheat was procured, he said adding the state government support was essential for Food Corporation of India to buy maximum wheat from farmers.

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Published: 17 Aug 2007, 01:17 PM IST
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