Has the Cabinet Approved a Hike in MSP for Rabi Crops?
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Synopsis
In a landmark decision, the CCEA has approved a significant increase in MSP for rabi crops for the upcoming marketing season. This move aims to enhance farmers' earnings and ensure sustainable agricultural practices across India. With notable increases for various crops, this decision is set to impact the agricultural landscape profoundly.
Key Takeaways
- MSP increased for rabi crops.
- Highest hike for safflower at Rs 600/quintal.
- Supports farmers’ income and crop diversification.
- Aligned with previous government commitments.
- Production estimates show positive trends.
New Delhi, Oct 1 (NationPress) The Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, has officially sanctioned an increase in the minimum support prices (MSP) for all designated rabi crops for the 2026-27 marketing season. This decision aims to guarantee favorable prices for the farmers' produce.
The most significant hike in MSP has been recorded for Safflower, with an increase of Rs 600 per quintal, closely followed by Lentil (Masur) at Rs 300 per quintal. Additionally, there are increases of Rs 250 for rapeseed and mustard, Rs 225 for gram, Rs 170 for barley, and Rs 160 for wheat.
This rise in MSP aligns with the announcement made in the Union Budget 2018-19 to set the MSP at a minimum of 1.5 times the All-India weighted average cost of production.
The anticipated profit margin over the All-India weighted average cost of production is 109% for wheat, 93% for rapeseed and mustard, 89% for lentil, 59% for gram, 58% for barley, and 50% for safflower. This augmented MSP will provide farmers with favorable prices and encourage crop diversification.
The production costs for these crops encompass all expenses, including hired labor, machine usage, rent for leased land, and costs related to seeds, fertilizers, irrigation, and more, as detailed in an official statement.
The MSPs are announced well ahead of the sowing season, allowing farmers to plan their crops effectively to enhance their earnings.
In a related development, India has achieved an unprecedented production of rice, wheat, maize, groundnut, and soybean during 2024-25, according to estimates from the Ministry of Agriculture and Farmers’ Welfare.
The country's kharif foodgrain production is projected at 1663.91 lakh metric tonnes (LMT), while rabi foodgrain production is estimated at 1645.27 LMT.
Point of View
I view this decision as a pivotal moment for Indian agriculture. The increase in MSP for rabi crops underscores the government's commitment to farmers' welfare. It not only ensures fair compensation but also encourages sustainable farming practices, which are essential for the nation's food security.
NationPress
01/10/2025
Frequently Asked Questions
What is MSP?
Minimum Support Price (MSP) is the price at which the government purchases crops from farmers, ensuring them a minimum profit margin.
Why is the MSP increase important?
The MSP increase is crucial as it guarantees farmers a fair return on their investments, promoting agricultural sustainability.
What crops are affected by the MSP hike?
The MSP hike affects all mandated rabi crops, including safflower, lentil, rapeseed, mustard, gram, barley, and wheat.
How does the government determine MSP?
The government sets the MSP based on the All-India weighted average cost of production, ensuring farmers earn at least 1.5 times that amount.
What impact will this have on farmers?
This increase in MSP is expected to enhance farmers' earnings and encourage them to diversify their crops, leading to a more resilient agricultural sector.
