Oct. 3 (Bloomberg) -- India, the world’s second-largest wheat producer, may increase the minimum price at which the state buys grain from farmers by 15 percent, said two government officials with direct knowledge of the proposal.
The farm ministry recommended a price of 1,350 rupees ($27.40) for 100 kilograms (220 pounds) of wheat to be paid to the growers for the marketing year that begins April 1, from 1,170 rupees this year, said the officials, who declined to be identified because the plan has yet to be approved.
The cabinet may consider the proposal later this month, said the officials. Manoj Pandey, a spokesman for the farm ministry, didn’t answer two calls made to his office and mobile phones today.
India’s government is the biggest buyer of food crops, purchasing them at guaranteed prices from farmers and selling them to people on low incomes at subsidized rates through state- run shops. The guaranteed prices are intended to protect farmers from forced sales at low rates on the open market.
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