Govt hikes minimum support prices for Rabi crops
19 Oct 2024
The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved an across-the-board increase in the minimum support prices (MSP) for all eligible Rabi crops for the 2025-26 marketing season.
A cabinet note said the increase in MSP is intended to ensure remunerative prices to the growers for their produce.
The cabinet recommended the highest increase in MSP of Rs300 per quintal for rapeseed and mustard, followed by lentil (masur) at Rs275 per quintal.
MSP for gram, wheat, safflower and barley have been increased by Rs210 per quintal, Rs150 per quintal, Rs140 per quintal and Rs130 per quintal, respectively.
Minimum Support Prices for all crops are fixed by adding 50 per cent of the cost of production of thecrop concerned.
MSP for RMS 2025-26 (Rs per quintal)
Crops MSP
Wheat 2,425
Barley 1,980
Gram 5,650
Lentil 6,700
Rapeseed/Mustard 5,950
Safflower 5,940
Cost of production includes all paid out costs, including those on account of hiring human labour, machine or bullock rent on leased in land, cost of inputs like seeds, fertilisers/manure, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets as also miscellaneous expenses and imputed value of family labour.
The Union Budget 2024-25 has mandated MSP of 1.5 times the cost of production of Rabi crops for the 2025-26 marketing season.
However, the MSP for for rapeseed and mustard has been fixed with a 98 per cent margin, lentil with 89 per cent margin, gram with 60 per cent margin, barley with 60 per cent margin and safflower with 50 per cent margin.
The increased MSP of rabi crops while ensuring remunerative prices to growers, will also support crop diversification, says a cabinet release.