He also said that many people are spreading rumours regarding the MSP and creating a gloomy atmosphere.
He said all input costs would be included while fixing MSPs of various crops and this decision would help double farm income by 2022.
Addressing the Krishi Unnati Mela 2018 at Pusa agriculture complex in New Delhi, he asked farmers to grow more oilseeds to reduce the country's dependence on imports of cooking oil.
Apart from this, he appealed to them to reduce the consumption of urea by at least half by 2022.
PM Modi also urged farmers not to burn crop residue as it leads to air pollution and affects soil fertility.
The government, he further said, is continuously working to tackle the challenges faced by the agriculture sector in a holistic manner.
"Government is working day and night to ensure that farmers get latest seeds, required electricity, do not face any problem in market access and get right prices for their produce," PM Modi said.
He inaugurated the Jaivik Kheti (organic farming) portal and laid the foundation stone of 25 KVKs (Krishi Vigyan Kendras). He also conferred the Krishi Karman Award and Pandit Deen Dayal Upadhaya Krishi Vigyan Protsahan Puruskar.
More than 800 stalls have been set up by the central and state governments and various other organisations in this fair.
The fair is showcasing ways to enhance farmers' income through theme pavilions like micro irrigation, neem-coated urea, soil check/soil health card, reducing input costs through less use of fertiliser, effectiveness of crop insurance scheme and new dimensions of income generation such as animal husbandry, bee keeping and poultry farming.