In a significant boost for farmers ahead of Diwali, the Union Cabinet chaired by Prime Minister Narendra Modi, approved the increase in the Minimum Support Price (MSP) of six mandated Rabi crops for 2025-26 marketing season in the range of `130-300 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 decision was announced by Union Minister Ashwini Vaishnaw.

The MSP for wheat has been raised by `150 per quintal, moving from `2,275 to `2,425 for the 2025-26 Rabi marketing season. The `150 per quintal hike in wheat support price is significant ahead of elections in states like Maharashtra, Jharkhand and Delhi. Rabi marketing season begins from April 2025. Mustard saw a hike of `300, bringing its MSP to `5,950 per quintal, while the MSP for Gram/Chana was increased by `210 bringing the new rate to `5,650 per quintal.

The higher MSP for mustard and chana is expected to provide farmers with better returns and encourage more cultivation of this oilseed, which is crucial for India’s pulses and edible oil supply. Mustard is widely grown in states like Rajasthan, Haryana, and Madhya Pradesh while chana is widely consumed by a larger part of the population.

Several factors contributed to the MSP hike, including a moderation in inflation, the availability of adequate wheat stocks, and softening global prices. Last year, the government had raised the wheat MSP by 7.05 per cent, the largest increase since 2014-15, to incentivise farmers to boost output.

The Commission for Agricultural Costs & Prices (CACP) recommends MSP for 22 crops before the sowing period each year. There are 14 Kharif crops and seven Rabi crops covered under MSP.

“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,” Vaishnaw said after the Cabinet meeting.

He said the support price for wheat has been increased to `2,425 per quintal for 2025-26, from `2,275 per quintal in the previous year. The support price for safflower was increased by `140 to `5,940 per quintal from `5,800 per quintal in the previous year. In case of pulses, support price for lentil (Masur) increased by `275 to `6,700 per quintal, while that for gram MSP raised by `210 to `5,650 per quintal for the 2025-26 marketing season.

Support price for barley increased by `130 to `1,980 per quintal for 2025-26 Rabi marketing season, from `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.

Home Minister Amit Shah said the Union Cabinet’s decision to increase the MSP of six Rabi crops will increase the income of farmers and they will become even more prosperous.