In view of the higher wheat stocks and to promote production of non-grain crops, the Commission for Agricultural Costs and Prices (CACP) has suggested the Government keep the minimum support price of wheat unchanged at Rs 1,285/quintal for the next year starting April 2013.

For the 2012-13 marketing season (April-March), the Centre had fixed the wheat MSP at Rs 1,285 per quintal and this had helped achieve a record 93.90 million tonnes of wheat output.

CACP, which advises the Government on pricing policy for major farm produce, has recommended not to increase wheat MSP for the 2013-14 marketing season. It suggested keeping the MSP unchanged at Rs 1,285 per quintal, a senior official told PTI.

The reason given was that the country had huge stocks of over 46 million tonnes of wheat and any increase would add to the food subsidy burden. The CACP also argued that there was a need to shift to non-grain crops and improve its supply to keep inflation under control, the official said.

The CACP recommended that only in the event of a ban on wheat exports could the Government increase its MSP by 10 per cent, the official added.

The centre lifted a four-year-old ban on wheat exports in September 2011 and about 1.5 million tonnes of the grain has been shipped so far.

The sowing of wheat, which is the main foodgrain crop grown during the rabi (winter) season, starts from October, but the Government usually declares the MSP before sowing operations to enable farmers to take an informed decision.

The CACP has submitted to the Government its recommendations on MSP of six crops grown in the rabi season.

Barring wheat, the Commission has recommended a substantial increase in the support price of five other crops — barley, gram, masur, mustard seed and safflower.

To boost oilseeds production, the CACP has suggested the hike in support price of mustard by Rs 500 per quintal to Rs 3,000 a quintal for 2013-14.

The final call on the CACP recommendations would be taken by the Cabinet.

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