Farmers in Punjab and Madhya Pradesh to Receive Higher Wheat Prices

• 15 Feb 2024

In a significant development, farmers in Punjab and Madhya Pradesh are set to receive prices for wheat that surpass their long-standing demand of C2 plus 50 per cent.

• This measure, where C2 represents the comprehensive cost of production, including various factors like labor and land rental, is a major win for farmers in these states.

Key Points

• Increased Procurement Prices: Farmers in Punjab and Madhya Pradesh, two major wheat-producing states, will now receive prices higher than the demanded C2 plus 50 per cent, providing them with improved returns for their produce.
• Contribution to Wheat Production: Together, these states contribute nearly 35 per cent of India's total wheat production and have been pivotal in supplying over 70 per cent of the wheat procured for the central pool during the rabi marketing season of 2023-24.
• MSP Comparison: The Minimum Support Price (MSP) for wheat, set at Rs 2,275 per quintal for the Rabi Marketing Season 2024-25, exceeds the C2 plus 50 per cent demand.
• Data Insights: Data from the Commission for Agricultural Costs & Prices (CACP) reveals that the MSP for wheat in Punjab exceeds the C2 cost by Rs 772 per quintal, representing a return of 51.36 per cent.
• Factors Influencing Returns: Higher returns in Punjab are attributed to factors like higher yields, with paddy and wheat yields surpassing national averages.