India increased the purchase price of domestically produced wheat

The Indian government has decided to increase the purchase price of new-crop wheat to encourage farmers to expand the area under grain cultivation and increase its production, Reuters reports.

As specified, the price was increased by 150 rupees (7%) - from 2125 rupees per 100 kg in 2022 to 2275 rupees ($27.33).

According to traders, an increase of 7% is good enough to encourage farmers to increase the area under grain. But to bring purchasing prices into line with market prices around the world, which are significantly higher, the government would have to raise prices more substantially.