MSP
FOR RABI CROPS : ECONOMY
NEWS
:
Centre Announces MSP Hike for Rabi Crops: Wheat Price Increased by 6.59%
for 2025-26 Season
WHAT’S
IN THE NEWS ?
The Indian government has raised the Minimum Support
Prices (MSP) for six Rabi crops, including a 6.59% hike for wheat, ahead of the
2025-26 marketing season.
MINIMUM
SUPPORT PRICE :
·
MSP Introduction: The Minimum Support Price (MSP) system was set up in 1965 to ensure
national food security and protect farmers from drastic price drops.
·
MSP Calculation:
·
A2:
Includes paid-out costs on seeds, fertilisers, pesticides, hired labour, leased
land, fuel, etc.
·
A2+FL: Adds
unpaid family labour to A2.
·
C2:
Comprehensive cost (A2+FL) + rental value of owned land and interest on
capital.
·
The
government sets MSP as 1.5 times the A2+FL cost.
·
MSP for Rabi Crops 2025-26: New MSPs for six Rabi crops announced, including:
·
Wheat:
₹150/quintal increase to ₹2,425/quintal.
·
Other
crops (barley, gram, lentil, rapeseed, mustard, safflower) saw 2.41% to 7.03%
hikes.
·
Highest
increase for rapeseed and mustard at ₹300/quintal.
·
Wheat's Significance:
·
Second-largest
crop with 318.33 lakh hectares sown in 2023-24, yielding 113.92 million tonnes.
·
Major
producers: Uttar Pradesh, Madhya Pradesh, Punjab, and Haryana.
·
Wheat
procurement decreased from 43.34 million tonnes in 2021-22 to 26.6 million
tonnes in 2024-25, benefiting 22 lakh farmers.