Cabinet Approves MSP Hike for Rabi 2026-27, Ensuring Profitable Prices for Farmers

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, has approved an increase in the Minimum Support Prices (MSP) for all mandated Rabi crops for the 2026-27 marketing season.

Ensuring Beneficial Prices for Farmers:

The government has raised MSPs to secure farmers’ incomes and provide them fair remuneration for their produce. The highest increase has been announced for Safflower, with MSP rising by ₹600 per quintal. Lentil (Masur) follows with an increase of ₹300 per quintal. Other key Rabi crops have also seen significant hikes:

1. Rapeseed & Mustard – ₹250/quintal
2. Gram – ₹225/quintal
3. Barley – ₹170/quintal
4. Wheat – ₹160/quintal

New MSPs for Rabi Crops (2026-27):

Note: The cost of production includes all expenses such as hired labor, bullock or machine labor, rent for leased land, seeds, fertilizers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for pump sets, and other miscellaneous costs, including the imputed value of family labor.

Purpose and Significance of the MSP Increase:

This MSP hike aligns with the Union Budget 2018-19 announcement, which aimed to fix MSPs at at least 1.5 times the all-India weighted average cost of production. Expected profit margins over the all-India average production cost are:

1. Wheat – 109%
2. Rapeseed & Mustard – 93%
3. Lentil – 89%
4. Gram – 59%
5. Barley – 58%
6. Safflower – 50%

The increased MSPs will ensure farmers receive fair prices for their crops and encourage crop diversification across the country.