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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