UP Govt Approves MSP of Rs 2,125 per quintal for Wheat Procurement

The Uttar Pradesh cabinet has approved the wheat procurement strategy for 2023-2024, setting a minimum support price (MSP) of Rs 2,125 per quintal with an aim of purchasing 60 lakh metric tonnes of wheat this fiscal.

The Minimum Support Price (MSP) is a type of market intervention used by the Government of India to protect agricultural producers from significant drops in farm prices. The Government of India announces minimum support prices for specific crops at the start of the sowing season based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).

Small and marginal farmers that produce 60 quintals or less of wheat would be given preference in procurement under the program, which will be in place until June 15, 2023.

The union government set MSP at Rs 2,125 per quintal. The plan was approved by the state cabinet, and a government decree outlining the details of the new wheat procurement policy was issued late Tuesday evening.

The state administration intends to establish 5,900 wheat procurement units to buy wheat directly from farmers under the new wheat procurement programme. Small and marginal farmers that produce 60 quintals or less of wheat would be given preference in procurement under the program, which will be in place until June 15, 2023.

Divisional commissioners would serve as nodal officers for their divisions, while district magistrates would serve as nodal officers for their respective districts. Wheat procurement centre would be open from 9 a.m. to 6 p.m.