InvestorQ : Why are farmers unhappy with the hike in MSP for wheat?
sara Kunju made post

Why are farmers unhappy with the hike in MSP for wheat?

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Mary Joseph answered.
3 months ago
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The central government on Wednesday announced an increase in the minimum support price or MSP for wheat by 2%. Thus, for the upcoming Rabi season the MSP for wheat will stand at Rs.2,015 per quintal. Farmers objected to this spike in MSP for being too low. Their primary objection is that the 2% hike in MSP does not even cover the inflation rate. Most wheat farmers have been on a 9-month long strike across Haryana and Punjab.

Farmers have also argued that the other crops like oilseeds, pulses, mustard and masoor dal had seen MSP hikes of around 8%. In comparison, the MSP for wheat has been hiked by just 2%. However, the government has pointed out that the current MSP was more than twice the cost of production, giving farmers over 100% margins. Currently, government fixes MSP for 23 crops including 6 Rabi crops. Government buys crops from farmers at MSP.

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