Cabinet approves hike in MSP for Rabi crops, mustard sees highest increase

The Central government has approved a significant increase in the Minimum Support Prices (MSP) for Rabi crops for the 2025-26 marketing season. Rapeseed and mustard farmers are set to benefit the most, with the MSP rising by Rs 300 per quintal, the highest among all crops, followed by a Rs 275 increase for lentils (masur).

Union Minister Ashwini Vaishnaw announced the decision after a Cabinet meeting chaired by Prime Minister Narendra Modi.

The hike is part of the government’s ongoing efforts to ensure better returns for farmers. The MSP for wheat, a key Rabi crop, has been raised by Rs 150 per quintal, while gram, safflower, and barley see increases of Rs 210, Rs 140, and Rs 130 per quintal, respectively.

This move aligns with the Union Budget 2018-19 policy of setting MSP at 1.5 times the all-India weighted average cost of production. The new prices guarantee a 105% margin for wheat growers, 98% for rapeseed and mustard, and 89% for lentils, with smaller margins for other crops.

The higher MSP aims to incentivise farmers to diversify their crops while ensuring more stable incomes.