New Delhi, Oct 16 (IANS): Prime Minister Narendra Modi on Wednesday said that the government's decision to increase the Minimum Support Price (MSP) of Rabi crops will make the lives of the farmers easier.
The Cabinet Committee on Economic Affairs (CCEA) chaired by PM Modi earlier on Wednesday approved the increase in the MSP for all mandated Rabi crops for the marketing season 2025-26.
"We are constantly taking big decisions for the welfare of our farmer brothers and sisters. In this direction, our government has increased the MSP of mandatory Rabi crops including wheat and gram, for the marketing season of 2025-26. This will make the life of our annadata (food providers) easier," PM Modi wrote in Hindi in a post on X.
The absolute highest increase in MSP has been announced for rapeseed and mustard at Rs 300 per quintal, followed by lentil (masur) at Rs 275 per quintal.
For gram, wheat, safflower, and barley, there is an increase of Rs 210 per quintal, Rs 150 per quintal, Rs 140 per quintal and Rs 130 per quintal, respectively, according to the CCEA.
The increase in MSP is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times of the All-India weighted average Cost of Production.
According to the government, the expected margin over the All-India weighted average cost of production is 105 per cent for wheat, followed by 98 per cent for rapeseed and mustard; 89 per cent for lentil; 60 per cent for gram; 60 per cent for barley; and 50 per cent for safflower.
"The increased MSP of rabi crops will ensure remunerative prices for the farmers and incentivise crop diversification," said the government.
Last month, the Cabinet approved nutrient-based subsidy (NBS) rates for the Rabi crops on phosphatic and potassic (P&K) fertilisers with a budgetary outlay of Rs 24,475.53 crore. The decision would ensure the availability of fertilisers to farmers at subsidised, affordable, and reasonable prices. The subsidy on P&K fertilisers will be provided based on approved rates for Rabi 2024 to ensure the smooth availability of these fertilisers to the farmers at affordable prices.
Meanwhile, the country clocked record foodgrain production at 3,322.98 LMT (lakh metric tonnes) in the agriculture year 2023-24 -- higher by 26.11 LMT than the production of foodgrains at 3,296.87 LMT achieved during agricultural year 2022-23. The foodgrain production saw a record increase due to good results with rice, wheat, and millet crops.