The MSP system has been a cornerstone of India’s agricultural policy, aiming to stabilize production while ensuring fair prices for farmers. Each year, the government announces MSP for Rabi and Kharif crops to incentivize the production of crops like wheat, rice, pulses, oilseeds, and cotton. Through MSP, the government seeks to provide farmers with returns exceeding their cost of production, ensuring farming remains a profitable venture. The MSP for 22 designated agricultural crops is determined by the Government of India based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), in consultation with state governments and relevant central ministries/departments.
Continuing this tradition, the central government’s approval of new MSPs for Rabi crops is a positive step toward strengthening the agricultural sector. For the upcoming 2025–26 marketing season, the MSP for wheat has been increased by ₹150 per quintal to ₹2,425, while the MSPs for mustard and chickpeas have been raised by ₹300 and ₹210 per quintal, respectively. Additionally, safflower and barley have seen an increase of ₹140 and ₹130 per quintal, respectively. These hikes demonstrate the government’s commitment to ensuring fair value for farmers’ produce, enhancing their income, and ensuring the effective supply of essential edible oils and pulses.
Minimum Support Price (MSP) for All Rabi Crops for the 2025–26 Marketing Season (₹ per Quintal)
| S. No. | Crop Name | MSP RMS 2025–26 | Production Cost RMS 2025–26 | Margin over Cost (%) | MSP RMS 2024–25 | Increase in MSP |
| 1 | Wheat | 2,425 | 1,182 | 105% | 2,275 | 150 |
| 2 | Barley | 1,980 | 1,239 | 60% | 1,850 | 130 |
| 3 | Chickpea | 5,650 | 3,527 | 60% | 5,440 | 210 |
| 4 | Lentil | 6,700 | 3,537 | 89% | 6,425 | 275 |
| 5 | Mustard | 5,950 | 3,011 | 98% | 5,650 | 300 |
| 6 | Safflower | 5,940 | 3,960 | 50% | 5,800 | 140 |
Figure 1: Minimum Support Price (₹ per Quintal) for Rabi Crops for 2025–26 and 2024–25
Efforts like these are essential to make Indian agriculture more sustainable and to strengthen the ecosystem. The significant MSP hike for mustard and chickpeas is crucial for India’s broader food security strategy. Mustard, a major oilseed crop during the Rabi season, is key to reducing the nation’s dependence on edible oil imports, while chickpeas are among the most widely consumed pulses in the country. Although the acreage of these crops has declined in recent years, this strategic MSP increase can encourage more farmers to cultivate mustard and chickpeas in states like Rajasthan, Haryana, and Madhya Pradesh.
Given the global volatility in food prices, boosting domestic production of pulses and oilseeds can stabilize prices within the country while addressing disruptions in the global supply chain. From a sustainability perspective, the MSP hike for mustard reflects efforts toward crop diversification. Compared to crops like wheat or rice, mustard requires less water, making it a more sustainable option for semi-arid regions. Amid the rapid impacts of climate change on agricultural productivity, promoting the optimal use of resources is a critical step toward building resilient agricultural systems.
Similarly, the newly announced MSP of ₹5,650 per quintal for chickpeas underscores the government’s intent to maintain food security and environmental sustainability. As a leguminous crop, chickpeas play a dual role in ensuring food security and improving soil health through nitrogen fixation.
Conclusion
The increase in MSP for Rabi crops reflects the government’s commitment to making agriculture a profitable venture. However, this measure will only be effective if implemented as part of a comprehensive strategy that includes economic stability for farmers, global market competitiveness, and balanced environmental challenges.
As global food markets evolve and India’s agricultural sector faces new challenges, balancing domestic farmer welfare and international competitiveness is essential. Structural reforms are needed to reduce farming costs, improve water management, and promote the adoption of innovative technologies while ensuring the optimal use of resources.
(Authored by- Dr. Shiv Charan Meena, Research Officer, NITI Aayog)
