Current Affairs-Topics

Government Announces Significant MSP Increase for Six Crops

The Indian government has announced a significant increase in the Minimum Support Price (MSP) for winter crops, with wheat MSP rising by ₹150 to ₹2,425 per quintal. The increase is primarily seen in states with robust procurement, such as Punjab, Haryana, Madhya Pradesh, Maharashtra, and Rajasthan.

New MSP Rates and Increases

  • Wheat MSP raised by ₹150 per quintal
  • Rapeseed/Mustard sees highest increase of ₹300  per quintal
  • Lentil (Masur) up by ₹275 per quintal
  • Gram increased by ₹210 per quintal
  • Barley raised by ₹130 per quintal
  • Safflower hiked by ₹140 per quintal
  • Percentage increases range from 2.41% to 7.03%

Expected Benefits and Impact

Returns over production costs:

    • Wheat: 105% margin
    • Rapeseed & Mustard: 98% margin
    • Lentil: 89% margin
    • Gram and Barley: 60% margin
    • Safflower: 50% margin
  • Aims to ensure remunerative prices for farmers
  • Encourages crop diversification
  • Benefits primarily realized in states with robust procurement:
    • Punjab, Haryana, Madhya Pradesh for wheat
    • Maharashtra for gram
    • Rajasthan for mustard

List of MSP Price Increases for 2025-26

Crops

MSP 2024-25

MSP 2025-26

Increase in MSP

Cost of production

Margin over cost

Wheat

2275

2425

150

1182

105

Barley

1850

1980

130

1239

60

Gram

5440

5650

210

3527

60

Lentil (Masur)

6425

6700

275

3537

89

Rapeseed and Mustard

5650

5950

300

3011

98

Safflower 

5800

5940

140

3960

50

MSP System Overview

  • Minimum Support Price (MSP) are federally fixed rates for crops
  • Announced twice yearly for summer and winter crops
  • Covers 22 mandated crops and sugarcane
  • Implemented since 1966-67
  • Based on recommendations by Commission for Agricultural Costs & Prices
  • Minimum 1.5 times the production cost (since 2018-19 budget)
  • Procurement conducted through:
    • Food Corporation of India
    • NAFED and NCCF for pulses and oilseeds
  • Marketing season runs from April 2025

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