Massive MSP Hike and ₹1.37 Lakh Crore Agri Budget Approved: Major Boost for Farmers

In a significant move to strengthen the agricultural sector and double farmers’ income, the Government of India has increased the agricultural budget for the financial year 2025-26 to ₹1,37,756.55 crore, up from ₹21,933.50 crore in 2013-14. This reflects the government's unwavering commitment to farmer welfare and infrastructure development in the agri-sector.

Substantial Increase in MSP for Key Crops:

The government annually declares Minimum Support Prices (MSP) for 22 major crops to ensure fair and remunerative prices to farmers. In the Union Budget 2018-19, it was announced that MSPs would be set at least 50% above the production cost. Following this, there has been consistent growth in MSP across cereals, pulses, oilseeds, and commercial crops.

For instance:

The MSP for common paddy rose from ₹1,940/quintal in 2021-22 to ₹2,369/quintal in 2025-26.
Wheat saw a rise from ₹1,975 to ₹2,425 during the same period.
Similarly, the MSP for arhar (tur) jumped from ₹6,300 to ₹8,000, and for soyabean (yellow variety), from ₹3,950 to ₹5,328.

Government Schemes Supporting Agriculture:

To make agriculture more self-reliant and profitable, the central government has launched and strengthened several schemes, including:

1. PM-KISAN (Direct income support to farmers)
2. PM Fasal Bima Yojana (Crop insurance)
3. Agriculture Infrastructure Fund (AIF)
4. Formation of 10,000 new FPOs
5. NaMo Drone Didi scheme
6. Natural Farming Mission
7. Seed and Soil Health Schemes
8. Per Drop More Crop
9. Crop Diversification Programme
10. Mission Oil Palm and Oilseeds Mission
11. Digital Agriculture Mission
12. National Beekeeping and Honey Mission
13. Bamboo and Organic Value Chain Mission

Transparent and Scientific MSP System: To further improve transparency in the MSP regime, a high-level committee was formed in July 2022. This expert body is working to make MSP calculation more scientific, empower the Commission for Agricultural Costs and Prices (CACP), and reform agricultural marketing systems as per evolving national needs.

MSP Growth for Major Crops (2021–22 to 2025–26):

Farmers Reap the Benefits: The steady rise in MSP reflects the government’s long-term and inclusive vision for agricultural reforms. By fixing MSPs at 1.5 times or more of production costs, the policy aims to uplift farmer incomes and ensure economic security for millions of agricultural households.

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