Cabinet Approves Increase in Minimum Support Price (MSP) for Rabi Crops for 2027-28 Marketing Season
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an increase in the Minimum Support Price (MSP) for Rabi crops to ensure remunerative 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 Price (MSP) for all mandated Rabi crops for the 2027-28 marketing season. The government's objective is to ensure that farmers receive a remunerative price for their produce.
According to the announced increases, the highest hike has been given to Safflower, which saw an increase of 675 rupees per quintal. This is followed by Rapseed and Mustard at 413 rupees per quintal, Lentil at 390 rupees, Barley at 136 rupees, Gram at 83 rupees, and Wheat at 25 rupees per quintal.
The Minimum Support Prices fixed for the 2027-28 marketing season (in rupees per quintal) are as follows: Wheat: 2,610; Barley: 2,286; Gram: 5,958; Lentil: 7,390; Rapseed and Mustard: 6,613; and Safflower: 7,215.
This decision is in line with the announcement made in the Central Budget 2018-19, which aimed to set the MSP at least 1.5 times the all-India weighted average cost of production. The expected margins compared to the cost of production are 106 percent for wheat, 96 percent for mustard and rapseed, 92 percent for lentil, 59 percent for gram, 58 percent for barley, and 50 percent for safflower.
According to the government, the increased MSP for Rabi crops will encourage crop diversification. In recent years, crops such as pulses and oilseeds, in addition to cereals, have been promoted through higher MSPs. Data indicates that wheat procurement increased to 3,715 lakh metric tonnes during 2014-15 to 2025-26, compared to 2,254 lakh metric tonnes between 2004-05 and 2013-14.
During the same period (2014-15 to 2025-26), the MSP payments made to wheat-growing farmers increased to 7.31 lakh crore rupees, up from 2.56 lakh crore rupees during 2004-05 to 2013-14. Similarly, the total payment made to farmers producing the six Rabi crops has risen from 2.65 lakh crore rupees to 8.36 lakh crore rupees.
