With Assembly elections in Madhya Pradesh, Rajasthan and Chhattisgarh round the corner, the Centre on Wednesday announced a steep increase in the MSP for winter-sown crops, including Rs 1,840 per quintal for wheat and Rs 4,620 for gram.

The Union Cabinet chaired by Prime Minister Narendra Modi approved the Minimum Support Price (MSP) for notified Rabi crops for 2018-19, which would give additional returns of Rs 62,635 crore to farmers.

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Compared with the MSP announced last year, the assured prices for this rabi season has been increased by Rs 105 per quintal for wheat, Rs 845 for safflower, Rs 200 for rapeseed and mustard, Rs 30 for barley, Rs 225 for Masur and Rs 220 for gram.

Addressing a press conference here, Union Agriculture Minister Radha Mohan Singh said that the MSP for wheat would provide 112.5 per cent profit over its production cost of Rs 866 per quintal.

For barley, the MSP is Rs 1,440 per quintal as against the production cost of Rs 860 per quintal, which gives a return of 67.4 per cent, he added.

For gram, the cost of production is Rs 2,637 per quintal whereas the new MSP is Rs 4,620 per quintal, giving a profit of 75.2 per cent.

The MSP for masur will be Rs 4,475 per quintal as against the production cost of Rs 2,532 per quintal, a profit of 76.7 per cent.

For rapeseed and mustard, the MSP is Rs 4,200 per quintal as against the production cost of Rs 2,212, a return of 89.9 per cent.

For safflower, the cost of production is Rs 3,294 per quintal whereas the MSP is Rs 4,945 per quintal, ensuring a profit of 50.1 per cent.