Cabinet raises MSP for six Rabi crops for 2027-28 marketing season

The Union Cabinet on Wednesday approved higher minimum support prices (MSP) for six mandated Rabi crops for the 2027-28 marketing season, with the increase expected to result in an estimated payout of Rs 90,962 crore.

The crops covered by the decision are wheat, barley, gram, lentil, rapeseed and mustard, and safflower. The revised MSPs range from Rs 2,286 per quintal for barley to Rs 7,390 per quintal for lentil.

The Cabinet Committee on Economic Affairs said the decision is in line with the Union Budget 2018-19 announcement that MSP should be fixed at a minimum of 1.5 times the all-India weighted average cost of production.

Safflower gets highest absolute increase

Safflower received the highest increase at Rs 675 per quintal, taking its MSP to Rs 7,215 per quintal. Rapeseed and mustard followed with an increase of Rs 413 per quintal, taking the MSP to Rs 6,613.

The MSP for lentil (masur) has been raised by Rs 390 per quintal to Rs 7,390, while barley received an increase of Rs 136, taking its MSP to Rs 2,286.

Gram MSP has gone up by Rs 83 per quintal to Rs 5,958, while wheat received the smallest increase of Rs 25, taking its MSP to Rs 2,610.

The expected margin over the all-India weighted average cost of production is 106% for wheat, followed by 96% for rapeseed and mustard, 92% for lentil, 59% for gram, 58% for barley and 50% for safflower.

The government said the higher MSPs are intended to provide remunerative prices to farmers and encourage crop diversification. It has in recent years promoted cultivation of crops other than cereals, particularly pulses and oilseeds, by offering higher MSPs for these crops.

Government cites rise in procurement and MSP payments

The procurement of wheat during 2014-15 to 2025-26 increased to 3,715 lakh metric tonnes (LMT), compared with 2,254 LMT during 2004-05 to 2013-14.

Procurement of the six Rabi crops during 2014-15 to 2025-26 also increased to 3,921 LMT, compared with 2,302 LMT during 2004-05 to 2013-14.

The MSP amount paid to wheat-growing farmers during 2014-15 to 2025-26 increased to Rs 7.31 lakh crore, compared with Rs 2.56 lakh crore during 2004-05 to 2013-14, according to the Cabinet Committee on Economic Affairs.

For farmers growing the six Rabi crops, the MSP amount paid during 2014-15 to 2025-26 rose to Rs 8.36 lakh crore, against Rs 2.65 lakh crore in the earlier period.

The government has said that the increase in MSPs is part of its policy of ensuring prices above the all-India weighted average cost of production. For the 2026-27 Rabi season, for comparison, the MSPs were Rs 2,585 per quintal for wheat, Rs 2,150 for barley, Rs 5,875 for gram, Rs 7,000 for lentil, Rs 6,200 for rapeseed and mustard, and Rs 6,540 for safflower.

The latest decision therefore raises the respective MSPs to Rs 2,610, Rs 2,286, Rs 5,958, Rs 7,390, Rs 6,613 and Rs 7,215 per quintal for the 2027-28 marketing season.