The Union Government has finally announced hike in minimum support price of Wheat to Rs 1080 per quintal, ahead of harvesting season of rabi crops. The decision, to revise MSP, was taken in the recent meeting of the Cabinet Committee on Economic Affairs (CCEA) on Wednesday, chaired by Finance Minister Pranab Mukherjee, in the absence of Prime Minister Manmohan Singh. The hike of 8 per cent in wheat prices, despite reservation by Planning Commission and Finance Ministry, would effective on crop marketed from April onward.

Various states owned agencies including the Food Corporation of India (FCI) and State agencies have considerable inventory of grains and the recent decision would add more problems for agencies to deal with large stocks. FCI and state agencies holds 180.62 lakh tonnes of wheat and 173.54 of rice as per data provided by them. Grain stock may further increase as area under wheat has been increased by farmers, anticipating considerable hike in wheat MSP.

MSP for rapeseed-mustard, gram, barley and masur (lentil) has also been revised as per recommendations of the Commission for Agricultural Costs & Prices (CACP). However, various political leaders and farmer associations has rejected the MSP hike, terming it very trivial under current environment of high inflation.

CACA also approved the up gradation project of nine stretches of national highways from four to six lanes at a cost of Rs 18,238 crore. These stretches includes Delhi-Agra, Krishnagiri-Wallajapet, Vijayawada-Eluru-Rajahmundry, Nellore-Chilkaluripet, Belgaum-Dharwad, Udaipur-Kishagarh, Varanasi-Aurangabad, Bhubaneswar-Jagatpur-Chandhikol and Indore-Dewas, with total road length of 1,409 km.