The cabinet on Wednesday hiked the minimum support price (MSP) for wheat by Rs 85 to Rs 1,925 a quintal and for pulses by up to Rs 325 per quintal.
MSP is the rate at which the government buys foodgrains from farmers.
“In a move to increase farmers’ income, the cabinet has increased MSP of rabi (winter-sown) crops for the current year,” information and broadcasting minister Prakash Javadekar told reporters after the meeting.
MSP for wheat was Rs 1,840 per quintal last year. Wheat is the main rabi crop, sowing of which will begin next month. The crop will be marketed from next April. Wheat farmers will, hence, get a return over cost of 109 per cent.
Barley MSP has also been increased Rs 85 to Rs 1,525 per quintal from Rs 1,440 per quintal last year.
To encourage the cultivation of pulses, the support price of masoor has been increased by Rs 325 to Rs 4,800 per quintal from Rs 4,475 per quintal last year.
Javadekar said among the rabi crops, the highest increase in MSP has been recommended for lentil (Rs 325 per quintal) followed by safflower (Rs 270 per quintal) and gram (Rs 255 per quintal).