Cabinet approves Minimum Support Prices (MSP) for Rabi Crops
The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi, has approved the increase in the Minimum Support Prices (MSP) for all mandated Rabi Crops for Marketing Season 2025-26.
Government has increased the Minimum Support Prices MSP of Rabi Crops for Marketing Season 2025-26, to ensure remunerative prices to the growers for their produce. The absolute highest increase in MSP has been announced for Rapeseed & Mustard at Rs.300 per quintal followed by Lentil (Masur) at Rs.275 per quintal. For gram, wheat, safflower and barley, there is an increase of Rs.210 per quintal, Rs.150 per quintal, Rs.140 per quintal and Rs.130 per quintal respectively.
Minimum Support Prices for all Rabi crops for Marketing Season 2025-26
(Rs. per quintal)
| S. No. | Crops | MSP RMS 2025-26 | Cost*of Production RMS 2025-26 | Margin over cost
(in percent) |
MSP RMS 2024-25 | Increase in MSP
(Absolute) |
| 1 | Wheat | 2425 | 1182 | 105 | 2275 | 150 |
| 2 | Barley | 1980 | 1239 | 60 | 1850 | 130 |
| 3 | Gram | 5650 | 3527 | 60 | 5440 | 210 |
| 4 | Lentil (Masur) | 6700 | 3537 | 89 | 6425 | 275 |
| 5 | Rapeseed & Mustard | 5950 | 3011 | 98 | 5650 | 300 |
| 6 | Safflower | 5940 | 3960 | 50 | 5800 | 140 |
The term “cost” refers to not only all paid-out expenses but also those incurred due to hired human labor, bullock or machine labor, and rent paid for leased-in land.
In addition, it encompasses expenses for material inputs such as seeds, fertilizers, manures, and irrigation charges, as well as depreciation on implements and farm buildings.
Furthermore, it accounts for interest on working capital, diesel or electricity used for operating pump sets, and miscellaneous expenses. Lastly, it includes the imputed value of family labor, rounding out the total cost involved.
increase in MSP for mandated Rabi Crops for Marketing Season
The increase in MSP for mandated Rabi crops for the Marketing Season 2025-26 is, therefore, closely aligned with the Union Budget 2018-19 announcement, which had promised to fix the MSP at a level of at least 1.5 times the All-India weighted average Cost of Production.
As a result, this move not only reaffirms the government’s ongoing commitment to supporting farmers but also ensures fair prices for their produce, thereby strengthening the agricultural sector.
All-India weighted average cost of production is 105 percent for wheat
The expected margin over All-India weighted average cost of production is 105 percent for wheat, followed by 98 percent for rapeseed & mustard; 89 per cent for lentil; 60 per cent for gram; 60 percent for barley; and 50 percent for safflower.
This increased MSP of rabi crops will ensure remunerative prices to the farmers and incentivise crop diversification.
