Thaindian News

Chandigarh, May 10 (IANS) Haryana Chief Minister Bhupinder Singh Hooda Monday urged the Commission for Agricultural Costs and Prices (CACP) to fix Rs.1,275 per quintal as the Minimum Support Price (MSP) for wheat while framing the price policy for rabi crops in 2010-11 to be marketed during 2011-12.
The recommendation to the CACP for higher MSP has been made in view of the increase in cost of cultivation of the crop, a state government spokesman said here.

The central government had fixed the MSP on wheat at Rs.1,100 this year, even though farmers and the Punjab government were seeking the MSP at Rs.1,500-1,600 this year itself.

“The Haryana government has also recommended Rs.975 per quintal as MSP of barley, Rs.2,850 per quintal for gram and Rs.2,450 per quintal for rabi oilseeds (rapeseed or mustard). The state government is continuously pressing the central government to enhance the MSP for uplifting the economic status of the farmers by giving them remunerative prices of their produce,” the spokesman added.

Farmers and state governments have been seeking higher MSP based on variable and fixed costs of cultivation.

The variable costs are human and machine labour, seeds, fertilizer, irrigation, pesticide, insecticide and weedicides. The calculation of fixed costs comprised rent of land owned, rent paid for leased land, land taxes and cess, depreciation on implements and farm building and some miscellaneous items, the spokesman added.

As per the calculations of both the fixed and variable costs, the cost of cultivation of wheat would increase by 0.6 percent in the next rabi season as compared to cost of cultivation of the year 2009-10.