The Cabinet Committee of Economic Affairs on Wednesday approved the increase of up to 9 per cent in the Minimum Support Prices (MSP) for all mandated Rabi crops for marketing season 2024-25.

The absolute highest increase in MSP has been approved for lentil (masur) at Rs 425 per quintal followed by rapeseed and mustard at Rs 200 per quintal.

For wheat and safflower, an increase of Rs 150 per quintal each has been approved.

For barley and gram an increase of Rs 115 per quintal and Rs 105 per quintal respectively, has been approved.

The increase in MSP for mandated Rabi crops for marketing season 2024-25 is in line with the union budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times of the All-India weighted average cost of production.

The expected margin over All-India weighted average cost of production is 102 per cent for wheat, followed by 98 per cent for rapeseed & mustard; 89 per cent for lentil; 60 per cent for gram; 60 per cent for barley; and 52 per cent for safflower.

This increased MSP of rabi crops will ensure remunerative prices to the farmers and incentivise crop diversification.