Government Raises Wheat Minimum Support Price by Rs 150 to Rs 2,425 Ahead of State Elections

The government has announced an increase in the Minimum Support Price (MSP) for wheat by Rs 150, setting it at Rs 2,425 per quintal for the 2025-26 marketing season. This decision comes as several states gear up for elections. The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, approved MSP hikes for six rabi crops, with increases ranging from Rs 130 to Rs 300 per quintal.

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Information and Broadcasting Minister Ashwini Vaishnaw highlighted that the MSP rise for rabi crops mirrors the significant increase seen in Kharif crops. Following the cabinet meeting, Vaishnaw stated that such announcements are routine and not linked to upcoming elections. He emphasised that farmers have a positive perception of the government's efforts.

MSP Hikes for Rabi Crops

The government has also raised the MSP for rapeseed and mustard seed by Rs 300, bringing it to Rs 5,950 per quintal. This move aims to enhance domestic oilseed production and reduce dependency on edible oil imports. Additionally, the support price for safflower has been increased by Rs 140 to Rs 5,940 per quintal.

In terms of pulses, the MSP for lentil masur has been increased by Rs 275 to Rs 6,700 per quintal. Similarly, the gram MSP has been raised by Rs 210 to Rs 5,650 per quintal for the upcoming marketing season. Barley also saw an increase in its support price by Rs 130, now set at Rs 1,980 per quintal.

Impact on Farmers and Elections

Prime Minister Modi remarked that these decisions are part of ongoing efforts to improve farmers' welfare. He noted that the new wheat MSP is significantly higher than production costs, which he described as a substantial achievement. The government expects these hikes to ensure fair prices for farmers and promote crop diversification.

The timing of this announcement coincides with elections in states like Maharashtra, Jharkhand, and Delhi. However, Vaishnaw dismissed any political motives behind the MSP increases. He reiterated that such decisions are typically made around this time each year.

The government's commitment to setting support prices at least 1.5 times the all-India weighted average cost of production was outlined in the Union Budget of 2018-19. This policy aims to provide remunerative prices for farmers while encouraging them to diversify their crops.

The recent MSP hikes reflect a consistent approach towards enhancing agricultural productivity and farmer income. By aligning support prices with production costs, the government seeks to create a sustainable agricultural sector that benefits both producers and consumers.