Government has recently announced Minimum Support Prices (MSP) for 6 mandated rabi crops viz. wheat, barley, gram, masur (lentil), rapeseed & mustard and safflower, for Rabi Marketing Season (RMS) 2022-23, on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP), and after considering the views of State Governments and Central Ministries/Departments concerned and other relevant factors.
The NITI Aayog (erstwhile Planning Commission) has conducted a study entitled “Efficacy of minimum support prices on farmers”, 2016. The study covered 14 States, 36 Districts, 72 Blocks, 144 Villages and 1440 Households. The study is based on both the primary and secondary data. The study has found among other things that MSP declared by the Government has encouraged 78 % of the farmers covered under the study for adopting improved methods of farming such as high yielding varieties of seeds, organic manure, chemical fertilizer, pesticides and improved methods of harvesting etc.
| S.No | Crops | MSP RMS 2024-25 | Cost of Production RMS 2024-25 | Increase in MSP (Absolute) | Margin over Cost (in %) |
|---|---|---|---|---|---|
| 1 | Wheat | Rs. 2275 | Rs. 1128 | Rs. 150 | 102% |
| 2 | Barley | Rs. 1850 | Rs. 1158 | Rs. 115 | 60% |
| 3 | Gram | Rs. 5440 | Rs. 3400 | Rs. 105 | 60% |
| 4 | Lentil (Masur) | Rs. 6425 | Rs. 3405 | Rs. 425 | 89% |
| 6 | Safflower | Rs. 5800 | Rs. 3807 | Rs. 150 | 52% |
Why MSP Matters
- Minimum Support Prices are the guaranteed prices that the government offers to farmers for their crops.
- These prices act as a safety net, ensuring that farmers receive a reasonable income for their produce
Key Increases
- Wheat: The MSP for wheat has increased by Rs. 150 per quintal, reaching Rs. 2275 per quintal for the 2024-25 season. This provides a 102% margin over the cost of production.
- Barley: Barley’s MSP has risen by Rs. 115 per quintal, reaching Rs. 1850 per quintal, with a 60% margin over the cost of production.
- Gram: The MSP for gram has gone up by Rs. 105 per quintal, now at Rs. 5440 per quintal, with a 60% margin over the cost of production.
- Lentil (Masur): Lentil sees the highest increase, with the MSP going up by Rs. 425 per quintal, reaching Rs. 6425 per quintal. This offers an impressive 89% margin over the cost of production.
- Rapeseed & Mustard: The MSP for rapeseed and mustard has been increased by Rs. 200 per quintal, reaching Rs. 5650 per quintal, with a 98% margin over the cost of production.
- Safflower:Safflower’s MSP has risen by Rs. 150 per quintal, reaching Rs. 5800 per quintal, with a 52% margin over the cost of production.: