The government has approved an increase in the Minimum Support Prices (MSP) for all mandated rabi crops for the 2027-28 marketing season. This decision aims to provide better income support to farmers and encourage crop diversification. The MSP for wheat, barley, gram, lentil, rapeseed and mustard, and safflower have all been raised, with safflower receiving the highest hike.
- Wheat MSP increased by ₹25 to ₹2,610 per quintal
- Safflower MSP increased by ₹675 to ₹7,215 per quintal
- Rapeseed and mustard MSP increased by ₹413 to ₹6,613 per quintal
- Lentil (masur) MSP increased by ₹390 to ₹7,390 per quintal
- Barley MSP increased by ₹136 to ₹2,286 per quintal
- Gram MSP increased by ₹83 to ₹5,958 per quintal
What is the significance of the MSP hike for rabi crops?
The Minimum Support Price is a government-set price at which it purchases crops from farmers, ensuring they receive a minimum income regardless of market fluctuations. Increasing MSPs helps protect farmers against price drops and encourages them to grow certain crops. The recent hike aims to ensure MSPs are at least 1.5 times the all-India weighted average cost of production, as announced in the Union Budget 2018-19.
How much has the MSP for wheat increased and why?
The MSP for wheat has been raised by ₹25 per quintal, from the previous rate to ₹2,610 per quintal for the 2027-28 season. The production cost of wheat is ₹1,264 per quintal, but the MSP is set at more than double this cost to provide farmers with a fair margin. This increase helps secure farmers' income and supports wheat cultivation.
Which crop received the highest MSP increase?
Safflower received the highest MSP increase of ₹675 per quintal, raising its MSP to ₹7,215. This significant hike is intended to incentivize farmers to diversify crops and consider safflower cultivation as a profitable option.
What are the expected margins over production costs?
The government expects the MSPs to provide substantial margins over the all-India weighted average cost of production. For example, wheat has an expected margin of 106%, rapeseed and mustard 96%, lentil 92%, gram 59%, barley 58%, and safflower 50%. These margins aim to ensure farmers earn remunerative prices.
How will these MSP changes impact farmers?
By increasing MSPs, the government intends to provide farmers with better income security and encourage them to diversify their crops. Higher MSPs can lead to improved livelihoods and reduce dependency on a limited number of crops, promoting sustainable agricultural practices.
Frequently Asked Questions
Q: What is the Minimum Support Price (MSP)?
A: MSP is a price set by the government to purchase crops from farmers, ensuring they receive a minimum income regardless of market prices.
Q: Why are MSPs increased for rabi crops?
A: MSPs are increased to provide farmers with better income, protect them from price fluctuations, and encourage crop diversification.
Q: Which rabi crop received the highest MSP hike for 2027-28?
A: Safflower received the highest MSP increase of ₹675 per quintal.
Q: How does the MSP compare to production costs?
A: The MSPs are set at least 1.5 times the all-India weighted average cost of production, providing farmers with a significant margin over costs.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved these MSP revisions to support farmers and promote agricultural growth in India.
