ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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POLITICS-Ideological Collapse

and urad; these increases were also higher than those recommended by the CACP, though the difference was not as high as in the case of wheat, reflecting the clout of the rich wheat-growing farmers as also the wheat traders and financiers. For the 1991-92 wheat crop, the CACP had recommended a minimum support price of Rs 225 per quintal, but the government had raised it to Rs 275 per quintal including a bonus of Rs 25 for wheat delivered up to May 1992. Subsequently, the expert committee report on the methodology for the estimation of cost of production of crops was taken into account, whereby the imputed valuation of family labour, the inclusion of management as an item cost, and the need to adjust support prices to account for increases in input cost subsequent to the CACP report became additional considerations. Apparently taking into account the first two aspects, the CACP recommended a price of Rs 305 per quintal for the 1992-93 wheat crop, an increase of 35.5 per cent over what it had recommended for the 1991-92 crop. However, on the plea that diesel prices had been raised subsequently, the government has fixed the wheat price at Rs 330 per quintal, inclusive of a bonus of Rs 25 for wheat delivered up to June 1993. In addition, the Punjab government has been paying an additional bonus of Rs 5 per quintal for grain procured in the state.

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