Cabinet Hikes MSP For Six Rabi Crops, Sees Over Rs 84,000 Crore Total Payout To Farmers

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday has approved the increase in the Minimum Support Prices (MSP) for all mandated Rabi Crops for Marketing Season 2026-27.

For wheat, which is one of the highest consumed food grains in India, the MSP has been set at Rs 160 per quintal.

For rapeseed and mustard, it has been set at Rs 250 per quintal, for gram at Rs 225 and barley at Rs 170.

The absolute highest increase in MSP has been announced for safflower at Rs 600 per quintal, followed by lentil (masur) at Rs 300 per quintal.

"The estimated procurement during the 2026-27 Rabi season is expected to reach 297 lakh metric tons, and farmers will be paid Rs 84,263 crore based on the proposed MSP," Union Minister Ashwini Vaishnaw said, while briefing reporters following the Cabinet meeting.

The announcement of fixing the MSP is at a level of at least 1.5 times of the all-India weighted average cost of production. The expected margin over all-India weighted average cost of production is 109% for wheat, followed by 93% for rapeseed and mustard; 89% for lentil; 59% for gram; 58% for barley; and 50% for safflower. This increased MSP of rabi crops will ensure remunerative prices to the farmers and incentivise crop diversification.

The cost of production includes all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilizers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc., miscellaneous expenses and imputed value of family labour.

"The MSP has been decided based on the recommendations of Commission for Agricultural Costs and Prices (CACP)," Vaishnaw said.