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Wheat MSP hiked by Rs 150 per quintal for the 2025-26 Rabi season

Utkarsh Classes Last Updated 17-10-2024
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.

 

FAQ

Answer: Rs 2425 per quintal, an increase of Rs 150 compared to last year.

Answer: Rapeseeds and Mustrads MSP increased by Rs 300 per quintal compared to last year. MSP - Rs 5950 per quintal

Answer: Cabinet Committee on Economic Affairs (CCEA)

Answer: Commission for Agricultural Costs & Prices (CACP under the Ministry of Agriculture

Answer: 1965
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