The present invention is directed to provide a raw material powder for modified permanent magnets capable of enhancing magnetic properties of iron.rare earth element metal.boron permanent magnets and reducing the production cost, and further to provide its production method. The raw material powder is a pulverized powder of sintered mass obtained by sintering in vacuum or in a non-oxidative gas a mixture of an acicular iron powder and an alloy powder containing iron, a rare earth element metal and boron.