NEW DELHI: The Cabinet Committee on Economic Affairs is likely to consider on Friday a Ministry of Agriculture proposal for raising the minimum support price of wheat to Rs. 750 a quintal this rabi from Rs. 650 a quintal last year.

The Commission for Agriculture Cost and Prices (CACP) had recommended a support price of Rs. 700 a quintal for the wheat to be procured for the Public Distribution System.

According to sources, the Ministry will also seek "in principle" permission of the CCEA to give a bonus of Rs. 50 a quintal in the support price of wheat, if required.

Last year, the CACP had suggested a support price of Rs. 650 a quintal, which was later raised to Rs. 700 after private trade and multi-national companies bought wheat at a higher rate. It was projected that wheat was bought by private trade from farmers directly, but a lot of it was cornered by traders and companies for speculation. This forced the Government to impose stockholding limits for wheat and pulses under the Essential Commodities Act.

Farmers are anxiously waiting for the announcement of the rabi wheat support price to plan sowing. The CCEA will also take a decision on the support price of rabi pulses and oilseeds.

However, a proposal of the Ministry to enhance wheat production and productivity from this rabi in select 138 districts in nine States is caught up in red tapism.

The proposal is to increase wheat production by enhancing sown area by 1.4 million hectares through timely sowing, supply of quality seeds including high temperature tolerant variety seeds, improved methods of sowing, promotion of integrated nutrient management, rescheduling fertiliser application and provision of diesel subsidy.

The Rs. 1241-crore subsidy package would be implemented in three phases over three years.

Bamboo Mission

Sources said the CCEA would also consider setting up a National Bamboo Mission under the Ministry of Agriculture for promotion of bamboo cultivation, particularly in the Northeast. A Group of Ministers headed by Agriculture Minister Sharad Pawar has recommended that the Mission be set up under the Agriculture Ministry.

The CCEA will decide whether the Mission should be under the Agriculture or the Science and Technology Ministry.

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