India raises the purchase price of wheat from farmers by 6.6 percent

India has raised the price at which it will purchase wheat from local farmers next year by 6.6% compared to this year's level, or by 1,600 rupees ($18) per ton to 25,850 rupees ($291.50), to encourage them to expand their sown areas and increase supply on the domestic market, announced the country's Minister of Information Technology Ashwini Vaishnaw after a meeting with Prime Minister Narendra Modi, as cited by international news agencies. The country is the second largest producer of wheat in the world. Every year, India sets the prices at which it will purchase wheat and rice from local farmers to ensure free supplies for 800 million people within the largest social program in the world. "The price increase was necessary to maintain farmers' interest in wheat, as rapeseed provided better returns than wheat last year. Farmers in some states are currently more inclined to switch to rapeseed," said a Mumbai-based dealer from a ...