Govt may hike wheat MSP, export surplus | delhi | Hindustan Times
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Govt may hike wheat MSP, export surplus

Wheat would be high on the agenda of Thursday's cabinet meeting, Chetan Chauhan reports.

delhi Updated: Dec 19, 2012 23:39 IST
Chetan Chauhan

Wheat would be high on the agenda of Thursday's cabinet meeting.

The Union cabinet is considering two proposals — hike minimum support price (MSP) for wheat and export of the food grain to ease pressure on its storage facilities.

The cabinet had earlier deferred its decision on MSP for wheat after some ministers expressed reservation over the proposed hike citing its impact on food inflation.

The agriculture ministry has proposed the wheat MSP for 2013 to be R1,400 per quintal as compared to R1,285 for the current year. However, finance minister P Chidambaram had reportedly opposed the proposal stating it would lead to inflation and burden the government.

The cabinet had asked the ministry to rationalise its proposal keeping in view the opinion in the cabinet. Sources said the agriculture ministry had now proposed R1,385 as MSP for pre-election year.

The food ministry — mandated to store the procured wheat — has sought cabinet's consent to export 25 lakh tonnes of wheat from the central pool to ease pressure on Food Corporation of India godowns.

The FCI has witnessed a 31% increase in wheat procurement in 2012.