Centre raises MSP for rabi crops by up to 5% to boost mustard, pulses cultivation

New Delhi: In a significant step toward bolstering the agricultural sector, the Indian government on Wednesday approved an increase in the Minimum Support Price (MSP) for seven major rabi crops by up to 5 percent for the 2025-26 marketing season. The hike, aimed at ensuring better returns for farmers and encouraging crop diversification, primarily focuses on key crops such as mustard, rapeseed, lentils, and chana, all of which play crucial roles in India's food security and import substitution efforts.

The most notable increase is for rapeseed and mustard, with the MSP raised by 300 rs per quintal. This is followed by a 275 rs per quintal hike for lentils (masur) and a 210 rs per quintal increase for chana (gram). These crops, essential for the production of edible oils and pulses, have been targeted to encourage higher domestic output and reduce the country's reliance on costly imports.

"This increased MSP of rabi crops will ensure remunerative prices for farmers and incentivize crop diversification," the government stated in a release, as per reports. By offering farmers better prices, the government aims to make mustard, chana, and lentils more attractive to cultivate, which could help in meeting the growing demand for edible oils and pulses in the country.

Reducing import dependency on edible oil and pulses

India has been grappling with rising inflation in edible oil and pulses, driven in part by erratic rainfall that has disrupted pulse production for two consecutive years. This has led to a spike in the prices of essential commodities like lentils and chana, which are staples in the Indian diet. To counter these challenges, the government has taken several steps, including lifting import restrictions on pulses to stabilise domestic supplies.

The hike in MSP is seen as part of a broader government strategy to enhance self-sufficiency in the production of edible oil and pulses. Currently, India is one of the largest importers of edible oils, with rapeseed and mustard forming a crucial part of the supply chain. By incentivizing farmers to grow more of these crops, the government aims to curb import dependency and promote the growth of local oilseed production.

"Edible oil is a critical commodity for our country, and by raising the MSP for mustard, we hope to see an uptick in its cultivation, which will ultimately help reduce our reliance on imports," an official said. The increase in MSP for lentils and chana will similarly encourage farmers to prioritise pulse production, which is essential for addressing inflationary pressures in the domestic market.

In conclusion, the government's decision to raise the MSP for rabi crops is a multifaceted policy aimed at addressing critical issues in India's agricultural sector, from supporting farmers to reducing the country's dependency on imports. By providing better price guarantees for mustard, chana, and lentils, the government hopes to not only boost domestic production but also ensure a more resilient and diversified agricultural landscape in the years to come.