- Union Cabinet approved MSPs for six Rabi crops for 2027-28 marketing season
- MSP increase highest for safflower at Rs 675 per quintal and rapeseed at Rs 413
- Expected margin over cost of production reaches up to 106% for wheat
The Union Cabinet on Wednesday approved the minimum support prices for six key Rabi crops, with the margin over cost of production projected as high as 106%. The move will lead to an estimated payout of Rs 90,962 crore during the marketing season 2027-28.
The six crops covered include wheat, barley, gram, lentil, mustard and safflower.
The absolute highest increase in MSP has been announced for safflower at Rs 675 per quintal followed by rapeseed and mustard at Rs 413 per quintal.
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For lentil (masur), barley, gram, and wheat, there is an increase of Rs 390 per quintal, Rs 136 per quintal, Rs 83 per quintal and Rs 25 per quintal respectively.
S. No. | Crops | MSP RMS 2027-28 | Cost* of Production RMS 2027-28 | Margin over cost (in percent) | MSP RMS 2026-27 | Increase in MSP (Absolute) |
1 | Wheat | 2610 | 1264 | 106 | 2585 | 25 |
2 | Barley | 2286 | 1447 | 58 | 2150 | 136 |
3 | Gram | 5958 | 3751 | 59 | 5875 | 83 |
4 | Lentil (Masur) | 7390 | 3854 | 92 | 7000 | 390 |
5 | Rapeseed & Mustard | 6613 | 3367 | 96 | 6200 | 413 |
6 | Safflower | 7215 | 4810 | 50 | 6540 | 675 |
"The increase in MSP for mandated Rabi Crops for Marketing Season 2027-28 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times of the All-India weighted average Cost of Production," the Cabinet Committee on Economic Affairs said in a release.
The expected margin over 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. This increased MSP of rabi crops will ensure remunerative prices to the farmers and incentivise crop diversification.
In the recent years, government has been promoting the cultivation of crops, other than cereals such as pulses and oilseeds by offering a higher MSP for these crops.
The procurement of wheat during 2014-15 to 2025-26 has increased to 3,715 LMT as compared to 2,254 LMT during 2004-05 to 2013-14. The procurement of six Rabi crops during 2014-15 to 2025-26 has increased to 3,921 LMT as compared to 2,302 LMT during 2004-05 to 2013-14.
The MSP amount paid to wheat growing famers during 2014-15 to 2025-26 has increased to Rs 7.31 Lakh crore as compared to Rs 2.56 lakh crore during 2004-05 to 2013-14, CCEA said in its release.
The MSP amount paid to the six Rabi crops growing farmers during 2014-15 to 2025-26 has increased to Rs 8.36 lakh crore as compared to Rs 2.65 lakh crore during 2004-05 to 2013-14, it added.
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