India RegionFarming and Agriculture

Farmers Applaud Government’s Record MSP Hike for Wheat, Lentils, and Mustard

16 October 2024, New Delhi: The recent decision by the Government of India to increase the Minimum Support Prices (MSP) for the 2025-26 Rabi season has been met with widespread approval among farming communities across the country. Particularly, wheat, lentil, and mustard farmers are expected to benefit the most from this hike, which aims to ensure that farmers receive fair prices for their produce amidst rising costs of cultivation.

Breakdown of MSP Increases

CropMSP 2025-26 (₹/quintal)Cost of Production (₹/quintal)MSP 2024-25 (₹/quintal)Increase in MSP (₹/quintal)Margin Over Cost (%)
Wheat2,4251,1822,275150105%
Barley1,9801,2391,85013060%
Gram5,6503,5275,44021060%
Lentil (Masur)6,7003,5376,42527589%
Rapeseed & Mustard5,9503,0115,65030098%
Safflower5,9403,9605,80014050%

Wheat Farmers Gain from MSP Increase

Wheat, which is a staple crop across northern India, has received an MSP increase of ₹150 per quintal. This hike, although moderate, is expected to provide relief to farmers who have been facing increased input costs over the past few years. With the MSP for wheat now standing at ₹2,425 per quintal, farmers are set to receive a significant 105% margin over the cost of production.

Lentils and Mustard See Major Gains

Lentil (masur) farmers, especially in states like Madhya Pradesh and Uttar Pradesh, are expected to benefit from the increase in MSP, which now stands at ₹6,700 per quintal—a ₹275 per quintal increase over the previous year. Similarly, mustard farmers will see the MSP rise by ₹300 per quintal, bringing it to ₹5,950 per quintal.

This increase is crucial for farmers of these crops, as it ensures profitability amidst rising labor, machinery, and irrigation costs.

Analysis of MSP Increase

The increase in MSP for wheat, lentils, mustard, and gram is expected to positively impact the purchasing power of farmers, who have long been dealing with thin margins due to inflation. However, agricultural experts caution that the government must also focus on improving procurement infrastructure to ensure that all farmers benefit from the increased MSP.

While Punjab and Haryana farmers have easier access to government procurement, other states like Uttar Pradesh and Madhya Pradesh need improvements in procurement processes to ensure that the benefits of MSP hikes reach small and marginal farmers.

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