New Delhi, October 16: Prime Minister Narendra Modi has commended the government’s decision to raise the Minimum Support Price (MSP) for all mandated Rabi crops for the 2025-26 marketing season. He emphasized that the government is committed to making decisions that benefit farmers and ensure fair returns for their produce.
Cabinet Approval for MSP Increase
The Cabinet Committee on Economic Affairs (CCEA), chaired by PM Modi, approved the new MSP rates to ensure remunerative prices for farmers. Following the meeting, Union Minister Ashwini Vaishnaw announced the specific increases for key crops:
- Rapeseed & Mustard: Increase of ₹300 per quintal (highest)
- Lentil (Masur): Increase of ₹275 per quintal
- Gram: Increase of ₹210 per quintal
- Wheat: Increase of ₹150 per quintal
- Safflower: Increase of ₹140 per quintal
- Barley: Increase of ₹130 per quintal
These hikes align with the Union Budget 2018-19’s policy of fixing MSP at 1.5 times the all-India weighted average cost of production to guarantee fair prices for farmers.
Expected Margins over Production Cost
The new MSP increases provide significant margins over production costs, with the following estimates:
- Wheat: 105%
- Rapeseed & Mustard: 98%
- Lentil: 89%
- Gram and Barley: 60% each
- Safflower: 50%
Incentivizing Crop Diversification
The government aims to promote crop diversification through this revised MSP structure. PM Modi emphasized that the decision would ease the lives of farmers and ensure that India’s “food providers” are adequately compensated for their efforts.
PM’s Statement on X
In a post on X (formerly Twitter), PM 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… This will make the life of our food providers easier.”
This move reflects the government’s commitment to strengthening the agricultural sector and ensuring long-term sustainability for farmers
