Prime Minister Narendra Modi recently praised the Cabinet's decision to increase the Minimum Support Price (MSP) for all mandated Rabi crops for the 2025-26 marketing season.
He emphasised that the government is continuously making significant decisions aimed at improving the welfare of farmers across the country. This latest move reflects the government's commitment to ensuring that farmers receive fair compensation for their produce.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Modi, approved this increase to guarantee that farmers earn remunerative prices for their harvests.
In a post on social media platform X, Modi stated, “We are constantly taking big decisions for the welfare of our farmer brothers and sisters. In this direction, today our government has increased the MSP of mandatory Rabi crops, including wheat and gram, for the marketing season of 2025-26. This will make the life of our food providers easier.”
The increase in MSP has been announced for several key Rabi crops. The most significant rise is for Rapeseed and Mustard, which will see an increase of ₹300 per quintal. The specific hikes for each crop are as follows:
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Wheat: Increased by ₹150 per quintal, bringing the MSP to ₹2,425 per quintal.
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Barley: Increased by ₹130 per quintal, bringing the MSP to ₹1,980 per quintal.
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Gram: Increased by ₹210 per quintal, bringing the MSP to ₹5,650 per quintal.
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Lentil (Masur): Increased by ₹275 per quintal, bringing the MSP to ₹6,700 per quintal.
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Mustard: Increased by ₹300 per quintal, bringing the MSP to ₹5,950 per quintal.
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Safflower: Increased by ₹140 per quintal, bringing the MSP to ₹5,940 per quintal.
The increase in MSP for mandated Rabi crops for the 2025-26 marketing season is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times the All-India weighted average cost of production.
The expected margins over the average cost of production for various crops are substantial. For instance, wheat farmers can expect a margin of 105 percent over the cost of production, while rapeseed and mustard will see a margin of 98 percent. Lentils will have a margin of 89 percent, followed by gram and barley at 60 percent each, and safflower at 50 percent.
This increase in MSP is crucial as it not only ensures fair compensation for farmers but also incentivizes them to diversify their crops. This is particularly important in a country where agriculture plays a vital role in the economy and the livelihoods of millions.
By providing better prices, the government aims to improve the economic conditions of farmers, encouraging them to invest more in their crops and adopt sustainable agricultural practices.
The decision to raise MSP is part of the broader strategy to enhance agricultural productivity and farmers' income. It is expected to have a positive impact on the farming community, ensuring that they can cover their production costs and earn a profit from their hard work.
Prime Minister Modi's commitment to farmer welfare is evident in this recent cabinet decision. By ensuring that farmers receive a fair price for their crops, the government aims to strengthen the agricultural sector, ultimately contributing to the overall economic development of the country.
As the country prepares for the upcoming marketing season, the emphasis on supporting farmers will likely lead to a more robust agricultural framework, benefiting both producers and consumers alike.
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