India, the world's second-biggest rice and wheat producer, buys the grain from local farmers at state-set prices.
The government on Wednesday raised the price at which it buys new-season wheat from local farmers by 105 rupees or 6 per cent, Union Minister of Agriculture & Farmers Welfare said on Wednesday, as Prime Minister Narendra Modi tries to defuse discontent among farmers ahead of elections in 2019.
The revised purchase price of 1,840 rupees ($25.09) per 100 kg for 2019 compares with 1,735 rupees a year ago, minister Radha Mohan Singh said.
India, the world's second-biggest rice and wheat producer, buys the grain from local farmers at state-set prices to build stocks to run a major food welfare programme.
Earlier, Reuters had reported that India was set to raise the support price of wheat by 6 per cent on Wednesday due to growing farmer discontent.
The government also raised the support price of chickpea and rapeseed to 4,620 and 4,200 rupees respectively, per 100 kg, Singh added.