Wheat MSP hiked by Rs 150 per quintal for the 2025-26 Rabi season
Agriculture
5 min read
The government of India has approved a hike of Rs 300 per quintal in the minimum support price (MSP) for Rapeseed and Mustard and Rs 150 per quintal for wheat for the 2025-26 agricultural season. The hike in the MSP for the rabi crops for the 2025-26 season was approved by the Union Cabinet Committee on Economic Affairs (CCEA) on 16 October 2024. Prime Minister Narendra Modi chaired the CCEA meeting.
July to June is the agricultural marketing season in India.
In the Union Budget of 2018-19, Finance Minister Arun Jaitley announced that a crop's MSP should be at least 1.5 times the All-India weighted average Cost of Production.
In the recently announced MSP for Rabi crops, the highest increase was in the MSP for Rapeseed and mustard, Rs.300 per quintal, followed by Lentil (Masur), Rs.275 per quintal.
MSP for all Rabi Crops for Marketing Season 2025-26
Following is the MSP announced by the government of India for the 2025-26 Rabi crops.
|
Serial No. |
Crops |
MSP 2025-26 (Rs per Quintal) |
MSP 2024-25 (Rs per Quintal) |
Increase in MSP (Rs per Quintal) |
Cost of production (Rs per Quintal) |
Margin over cost (in per cent) |
|
1 |
Wheat |
2425 |
2275 |
150 |
1182 |
105 |
|
2 |
Barley |
1980 |
1850 |
130 |
1239 |
60 |
|
3 |
Gram |
5650 |
5440 |
210 |
3527 |
60 |
|
4 |
Lentil(Masur) |
6700 |
6425 |
275 |
3537 |
89 |
|
5 |
Rapeseed and Mustard |
5950 |
5650 |
300 |
3011 |
98 |
|
6 |
Safflower |
5940 |
5800 |
140 |
3960 |
50 |
What is the Minimum Support Price (MSP)?
The government of India introduced Minimum Support Crop(MSP) for selected crops in 1966-67. The government announces it before the Kahrif and Rabi season.
MSP assures farmers that the government will buy their crops at an assured price; however, the government is not obligated to buy all crops from all farmers at the MSP rates.
Commission for Agricultural Costs & Prices (CACP) and its Role
In 1965, the Union Ministry of Agriculture and Farmer Welfare set up an expert committee named the Commission for Agricultural Costs & Prices (CACP). The CACP recommends MSP for the mandated crops to the government of India.
The recommendation of the CACP is advisory in nature, and the central government is not bound to accept it.
Mandated Crops under MSP
At present, the CACP recommends MSP for 22 crops and a fair and remunerative price (FRP) for sugarcane.
The mandated crops are;
- Cereals -Wheat, Paddy, Wheat, Barley, Ragi, Maize, Sorghum, Pearl millet,
- Pulses- Chickpea / Gram, Tur, Moong, Urad, Lentil
- Oilseeds - Soybean, Sesame, Sunflower, Peanut, Rapeseed, Safflower, Niger seed
- Commercial crops -Copra, Sugarcane, Cotton, Raw jute
For Toria and De-Husked coconut, the Department of Agriculture and Cooperation, Government of India, fixes the MSP based on the MSPs of Rapeseed/Mustard Seed and Copra, respectively.
Cropping Season in India
According to the Indian Council of Agricultural Research, Kharif, Rabi, and Zaid are India's three main cropping seasons.
Kharif Season
It coincides with the onset of the South West Monsoon, with the sowing season being June/July and the harvesting season being September-October.
Major crops
Paddy, soyabean, moong, toor(arhar) maize, jawar, bajra, urad, cotton, jute, groundnut and soyabean.
Rabi Crops
It is sown during October -December and harvested in March/April. Major crops are Barley, peas, sunflower, mustard, wheat gram, etc.
Zaid Crops
It is a period after harvesting the rabi crops and before the sowing of the kharif crops.
Cucumbers, vegetables, fodder crops, watermelon, and muskmelon are major crops.
