India raises minimum support price of 2017-2018 rabi wheat, other crops

25.10.2017

The Indian government has raised the minimum support price for 2017-2018 rabi crops, including wheat, central agriculture minister Radha Mohan Singh tweeted on Tuesday. The minister said that the MSP for wheat was hiked by Rupees 110 to Rupees 1,735/quintal or Rupees 17,350($266.19)/mt, up 6.8% from a year ago.

The MSP is the floor price at which government agencies buy grain from farmers. In 2016-2017, the MSP for wheat was Rupees 1,625/quintal, up Rupees 100 from a year earlier.

Wheat is India's main rabi crop, and sowing begins in October-November. Procurement of rabi wheat by government agencies at the new MSP will begin in April, according to local media reports.

In 2016-2017, India produced an estimated 98.38 million mt of wheat, up 6.6% from a year earlier. It is expected to produce 97.5 million mt of wheat in 2017-2018, according to the government's first advance estimate released on September 22.

USDA on October 16 revised India's 2017-2018 wheat production to 98.4 million mt, up 2.4 million mt from its previous estimate, based on latest government data on favorable weather and record yield.

The MSPs of five other rabi crops -- barley, gram, masur (lentils), rapeseed/mustard, and safflower -- have been raised in an attempt to help the farmers and boost crop production, local media reported.


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