India may hike state-set wheat buy price

India is considering raising the state-fixed purchase price of wheat by up to Rs50 (US$1.08) per 100 kilogrammes in the 2009-10 marketing season that started this month, a senior agriculture ministry official said Wednesday (Oct 7).

The likely rise in the wheat purchase price is aimed at encouraging farmers to sow more area under the winter-sown grain, which will partially help offset an expected fall in summer-sown food grains, mainly rice, due to weak monsoon rains, said the official, who declined to be identified.

Rice is mainly grown in the summer, while wheat is the main winter crop.

India fixed a purchase price of Rs1,080 (US$23.3) per 100 kg for wheat in the 2008-09 season. This is the minimum price a farmer is supposed to get for selling the grain either to the government or to private millers.

Sowing of wheat normally starts in late October, while the harvest begins in April.