Cabinet Briefing: Government Hikes Minimum Support Price For Wheat, Rabi Crops

The central government has approved a 6.5% increase in the minimum support price for wheat, a vital rabi crop for the upcoming marketing season of 2025-26 (April-June). The MSP for wheat will rise from Rs 2,275 per quintal to Rs 2,425 per quintal.

This decision comes alongside increases in MSPs for other essential crops, including mustard and chana. The MSP for mustard has been raised by Rs 300 to Rs 5,950 per quintal, while the chana MSP will see an increase of Rs 210, reaching Rs 5,650 per quintal.

Several factors contributed to the MSP hike, including a moderation in inflation, the availability of adequate wheat stocks, and softening global prices. Last year, the government had raised the wheat MSP by 7.05%, the largest increase since 2014-15, to incentivise farmers to boost output.

The MSP is determined based on recommendations from the Commission for Agricultural Costs and Prices and inputs from state governments. The cabinet typically announces the MSP for rabi crops—such as wheat, mustard, chana, and lentils—prior to the sowing season to give farmers the necessary guidance.

In addition to the agricultural announcements, central government employees and pensioners are also set to benefit from a festive boost.

On Wednesday, the Union Cabinet also approved an increase in dearness allowance and dearness relief during its meeting, providing financial relief ahead of Diwali. This anticipated hike has been long awaited by employees and pensioners.

While a rise was anticipated after the Cabinet meeting on Oct. 9, employees and pensioners had to wait a bit longer for this festive boost.