India, Oct. 2 -- The central government announced the Minimum Support Price (MSP) for rabi (winter season) crops on Wednesday. MSP for wheat, the crop that matters most in terms of actual procurement, has been kept almost flat with an increase of just Rs.25 per quintal. Other crops such as pulses and oil seeds saw larger increases.

To be sure, the current government has consistently followed its policy of ensuring at least a 50% return on the all-India weighted average cost of cultivation. The relatively lower increase in wheat MSP therefore also suggests that the cost of cultivation has been flat.

The policy seems prudent for two reasons. One, the government already has excess wheat stocks from the previous season's procurement and doe...