Business News : The Union government has approved increase in minimum support price (MSP) for six crops including wheat for the 2027-28 Rabi season. The government says the aim is to ensure that farmers get better and fairer prices for their crops. These six crops include wheat, barley, gram, lentil, mustard-rapeseed and safflower.

How much has the MSP been increased for which crop?

The government has made the largest increase in the MSP of safflower by Rs.675 per quintal. After this, the MSP of mustard and rapeseed has increased by Rs.413 per quintal.

The increase in MSP for other crops is as follows:

Lentils: Rs.390 per quintal

Barley: Rs.135 per quintal

Gram: Rs.83 per quintal

Wheat: Rs.25 per quintal

Why was the decision taken to increase MSP?

The government said that this increase in MSP is in accordance with the norms established in the Union Budget 2018-19. Under this regulation, farmers were targeted to be given an MSP of at least 1.5 times their average cost of production. According to government estimates, after reducing the cost of cultivation, farmers can earn up to around 106% for wheat, 96% for mustard and rapeseed, 92% for lentils, 59% for gram, 58% for barley and 50% for safflower.

Also encouraged the cultivation of pulses and oilseeds

Over the past few years, the government has been encouraging farmers to grow pulses and oilseeds instead of relying on cereal crops like wheat and rice. Hence, the MSP for this crop is being kept relatively high. The government hopes that this will encourage farmers to cultivate other crops as well.

How much has the government wheat purchase increased?

According to government data, the government purchased around 3,715 lakh metric tonnes (LMT) of wheat between 2014-15 and 2025-26. Earlier, during the 10-year period from 2004-05 to 2013-14, government wheat procurement was around 2,254 LMT. This means that government wheat procurement has increased significantly compared to the previous period.

Government purchase of six ravi crops

If we consider the six major rabi crops along with wheat, the total government procurement between 2004-05 and 2013-14 was around 2,302 LMT. As a result, this procurement increased to around 3,921 LMT between 2014-15 and 2025-26.

How much was paid to farmers under MSP?

The payment to farmers growing wheat under MSP has also increased. From 2014-15 to 2025-26, wheat farmers received an MSP payment of around Rs 7.31 lakh crore, compared to Rs 2.56 lakh crore during 2004-05 to 2013-14. Similarly, the total MSP payment to farmers for the six major rabi crops increased from around Rs 2.56 lakh crore during 2004-05 to 2013-14 to Rs 8.36 lakh crore during 2014-15 to 2025-26. Overall, the government says, this increase in MSP will help farmers get better prices for their crops and promote cultivation of crops like pulses and oilseeds.