Stung by poor output in kharif crops, the government is considering incentivising the farming community ahead of the rabi season. With this objective in view, the Union cabinet is likely to discuss the pricing policy for rabi crops for this fiscal, which would be marketed in 2010-11, when it meets on Thursday.
Sources said raising the minimum support price (MSP) for wheat by around Rs 20 per quintal could also be discussed in the meeting. Currently, the MSP for wheat stands at Rs 1,080 per quintal.
If approved, the MSP for wheat would be around Rs 1,100 per quintal. Since 2005-06, the government has consistently raised the MSP of wheat and the biggest hike came in 2007-08, when it raised the price by 21.43 per cent. Sources said the MSP for mustard and other crops grown during the rabi season, sowing for which starts in November, could also be discussed in the meeting. Chief planner Montek Singh Ahluwalia said on Wednesday that with a decent rabi output, spiralling food prices could also be contained.