Government Increases Minimum Support Price for Wheat

In a significant move to boost farmer incomes, the government has announced a 5% increase in the Minimum Support Price (MSP) for wheat for the upcoming procurement season. This raise, which exceeds the inflation rate, aims to ensure better returns for wheat growers across the country.

The Cabinet Committee on Economic Affairs approved the new MSP of ₹2,275 per quintal, up from last year's ₹2,165. The decision comes after considering recommendations from the Commission for Agricultural Costs and Prices (CACP) and consultations with farmer organizations.

"This increase in MSP reaffirms our commitment to ensuring fair remuneration for our farmers," said the Agriculture Minister during the announcement. "It will provide a strong price signal to the market and help stabilize wheat prices."

Impact on Farmers

The higher MSP is expected to benefit millions of wheat farmers, particularly in the major wheat-producing states of Punjab, Haryana, Uttar Pradesh, and Madhya Pradesh. Economic analysts estimate that this increase could translate to an additional income of ₹5,000-7,000 per hectare for wheat farmers.

Farmer organizations have generally welcomed the move, though some have pointed out that the increase falls short of their demand for MSP based on the comprehensive cost calculation formula (C2+50%) recommended by the Swaminathan Commission.

"While we appreciate the increase, the MSP still doesn't fully account for the rising input costs farmers are facing," said Gurnam Singh, a representative of a prominent farmers' union. "Fertilizer, diesel, and labor costs have all gone up significantly."

Procurement Targets

The Food Corporation of India (FCI) has set a procurement target of 34 million tonnes of wheat for the 2025-26 season. Last year, actual procurement fell short of targets due to higher market prices, which led many farmers to sell to private traders instead of government agencies.

To address this, the government has announced improvements to the procurement process, including more procurement centers, faster payment systems, and better storage facilities. "We want to ensure that farmers can easily access the MSP benefit without logistical hurdles," said the FCI Chairman.

The wheat sowing season will begin next month, and with favorable weather conditions predicted, agricultural experts are forecasting a bumper crop. The increased MSP is expected to encourage farmers to maintain or expand their wheat acreage.