The Cabinet Committee on Economic Affairs has approved the increase in the Minimum Support Prices (MSP) for 14 Kharif Crops for Marketing Season 2026-27, on Wednesday.
The highest absolute increase in MSP over the previous year has been recommended for Sunflower Seed (Rs 622 per quintal) followed by Cotton (Rs 557 per quintal), Nigerseed (Rs 515 per quintal) and Sesamum (Rs 500 per quintal).
"Through this entire decision, a total payout of around Rs 2.6 lakh crore will go to farmers," cabinet minister Ashwini Vaishnaw said during the briefing.
Besides them, there has been a 247% increase in the MSP for Ragi to Rs 5,205 from Rs 3,705. Pulses like Arhar and Moong have seen hikes of 97% and 95% to Rs 8,45 and Rs 8,780 respectively.
During the briefing Vaishnaw highlighted that Prime Minister Narendra Modi decided that the Minimum Support Price (MSP) would be fixed by adding a 50% profit over the total cost of cultivation.
"According to that decision, all subsequent Kharif and other crop-related decisions have been taken on the formula: Cost + 50 per cent Profit = MSP. Accordingly, in today's decision regarding Kharif crops, MSP has been fixed at cost plus 50 per cent profit or even more for all major Kharif crops," He underscored.
The increase 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 expected margin to farmers over their cost of production are estimated to be highest in case of Moong (61%) followed by Bajra (56%), Maize (56%) and Tur/Arhar (54%). For rest of the crops, margin to farmers over their cost of production is estimated to be at 50%.
In the recent years, Government has been promoting the cultivation of crops, other than cereals such as pulses and oilseeds, and Nutri-cereals/ Shree Anna, by offering a higher MSP for these crops.
During the period 2014-15 to 2025-26, procurement of paddy was 8418 LMT while during the period 2004-05 to 2013-14, procurement of paddy was 4590 LMT. While procurement of 14 Kharif crops was 8746 LMT.
MSP amount paid to Paddy growing famers during the same period amounted to Rs. 16.08 lakh crore and the MSP amount paid to 14 Kharif crops growing famers was Rs. 18.99 lakh crore.
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