Cabinet approves MSP hike on Rabi crops, providing pre-Diwali relief to farmers

In a significant boost for farmers ahead of Diwali, the Central Government has approved an increase in the Minimum Support Price (MSP) for key rabi crops. The decision was announced by Union Minister Ashwini Vaishnaw following a cabinet meeting on Wednesday.

The MSP for wheat has been raised by Rs 150 per quintal, moving from Rs 2,275 to Rs 2,425. Mustard saw a hike of Rs 300, bringing its MSP to Rs 5,950 per quintal, while the MSP for gram was increased by Rs 210 to Rs 5,650 per quintal.

The hike in MSP is significant ahead of elections in states like Maharashtra, Jharkhand and Delhi. Rabi marketing season begins from April 2025.

The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, approved the increase in the MSP of six mandated rabi crops for 2025-26 marketing season in the range of Rs 130-300 per quintal.

"The major decision taken by the cabinet is related to the welfare of the farmers. Like in Kharif, there is a significant increase in the MSP for rabi crops," I&B Minister Ashwini Vaishnaw told media after the cabinet meeting.

He said the support price for wheat has been increased to Rs 2,425 per quintal for 2025-26, from Rs 2,275 per quintal in the previous year.

To increase domestic production of oilseeds, the cabinet increased the support price for rapeseed/mustard seed by Rs 300 to Rs 5,950 per quintal for the 2025-26 marketing season. The support price for safflower was increased by Rs 140 to Rs 5,940 per quintal from Rs 5,800 per quintal in the previous year.

In case of pulses, support price for lentil (masur) increased by Rs 275 to Rs 6,700 per quintal, while that for gram MSP raised by Rs 210 to Rs 5,650 per quintal for the 2025-26 marketing season. Support price for barley increased by Rs 130 to Rs 1,980 per quintal for 2025-26 rabi marketing season, from Rs 1,850 per quintal in the previous year.

The increase in rabi crops MSP 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 margin over the All-India weighted average cost of production is 105 per cent for wheat, followed by 98 per cent for rapeseed & mustard; 89 per cent for lentil; 60 per cent for gram; 60 per cent for barley; and 50 per cent for safflower.

This increased MSP of rabi crops will ensure remunerative prices to the farmers and incentivise crop diversification, the minister added.

(With inputs from PTI)