PM Modi’s Promise: Higher Profits for Farmers with Increased MSP for Rabi Crops
Union Minister Shivraj Singh Chouhan announced that Prime Minister Narendra Modi has committed to purchasing crops from farmers at a minimum of 50% profit above the cost of production. This decision was made during a Cabinet Committee on Economic Affairs meeting chaired by PM Modi.
Increased Minimum Support Prices (MSP)
The government has approved an increase in the Minimum Support Prices for all mandated Rabi crops for the 2025-26 marketing season. The new MSPs are as follows:
| Crop | MSP (Rs per quintal) |
|---|---|
| Wheat | 2,425 |
| Barley | 1,980 |
| Gram | 5,650 |
| Lentil (Masur) | 6,700 |
| Rapeseed and Mustard | 5,950 |
| Safflower | 5,940 |
The increases range from Rs 130 to Rs 300 per quintal compared to the current MSPs.
Profit Margins for Farmers
The profit margins over the cost of production are significant: 105% for wheat, 98% for rapeseed and mustard, 89% for lentil, 60% for gram and barley, and 50% for safflower. This initiative aims to provide remunerative prices and encourage crop diversification.
Union Minister Ashwini Vaishnaw highlighted that this increase aligns with the Union Budget 2018-19’s goal of setting MSP at 1.5 times the all-India weighted average cost of production.
Doubts Revealed
PM Modi -: PM Modi refers to Narendra Modi, the Prime Minister of India. He is the leader of the Indian government and makes important decisions for the country.
MSP -: MSP stands for Minimum Support Price. It is the lowest price at which the government buys crops from farmers to ensure they get a fair price for their produce.
Rabi Crops -: Rabi crops are crops that are sown in winter and harvested in the spring. Examples include wheat, barley, and mustard.
Union Minister Shivraj Singh Chouhan -: Shivraj Singh Chouhan is a politician in India and a member of the Union Cabinet. He helps make decisions about agriculture and other important matters.
Cabinet Committee on Economic Affairs -: This is a group of important government officials in India who make decisions about the country’s economy, including setting prices for crops.
Crop Diversification -: Crop diversification means growing different types of crops instead of just one. This helps farmers reduce risks and improve soil health.
