Home Economy MSP hiked to boost food production

MSP hiked to boost food production


New Delhi : In order to boost food production of the rabi crop in 2011-12, the Cabinet Committee on Economic Affairs Tuesday hiked the minimum support price (MSP) of wheat to Rs.1,285 per quintal, marking an increase of Rs.165 per quintal over last year.

The CCEA also hiked MSP for other rabi crops. Officials said improved MSP would attract farmers into increasing output.

While MSP of barley has been raised by Rs.200 per quintal and fixed at Rs.980 per quintal, the MSP of gram and masur has been fixed at Rs.2,800 per quintal each, marking an increase of Rs.700 per quintal and Rs.550 per quintal respectively over last year.

Similarly, MSPs of rapeseed/mustard and safflower have been increased by Rs.650 per quintal and Rs.700 per quintal respectively over the last year and fixed at Rs.2,500 per quintal each for 2011-12.

The CCEA also approved the setting up of 15 new Mega Food Park Projects under the Infrastructure Development Scheme (in addition to 15 ongoing projects), involving a total grant of Rs.787.50 crore.

The new Mega Food Parks will result in the creation of state of the art infrastructure in major parts of the country with efficient supply chain management from farm gate to retail outlets, said officials.

The projects are expected to bring about substantial reduction of wastage, value addition, employment generation and increased income for the farmers, they said.

The cabinet Tuesday approved a proposal for augmenting the capital base of National Bank for Agriculture and Rural Development (NABARD) by infusing Rs.3,000 crore as government equity in two instalments of Rs.1,000 crore in 2011-12 and Rs.2,000 crore during 2012-13.