India is stepping up its game in the agricultural sector, increasing its wheat procurement price by 6.6% for the 2025 season, raising the rate to 2,425 rupees per 100 kg (from 2,275 rupees last year). This hike is a strategic move to encourage farmers to plant more wheat, minimize the need for imports, and stabilize domestic supplies after a tough stretch of poor harvests due to scorching temperatures. 🌞🌾
🔑 Key Highlights:
- 6.6% Increase: The minimum support price (MSP) for wheat is now set at 2,425 rupees per 100 kg for 2025.
- Boosting Output: The goal? To reduce import reliance and keep stocks up.
- Supply Shortfalls: In 2024, India managed to procure 26.6 million metric tons, falling short of the 30-32 million ton target.
- Temperature Troubles: High temperatures in 2022-2023 hit harvests hard, leading to a 6.25% drop in yields.
- Import Duty: Despite the price hike, the government is keeping the 40% wheat import tax unchanged to protect local farmers. 🌾🇮🇳
🏆 Why It Matters:
India, the world’s second-largest wheat producer, is doubling down on efforts to secure food stocks and ensure self-sufficiency—a crucial step as wheat plays a central role in the country’s food welfare program, feeding 800 million people. Modi’s government is keen to support rural farmers, especially after losing rural seats in the last election, making this price hike part of a broader farmer-friendly approach. 🗳️
With planting set to kick off in October-November and harvest in April, this move is likely to stabilize both the market and farmer confidence. 🌱👩🌾