Cabinet approves Minimum Support Prices (MSP) for Rabi Crops for Marketing Season 2027-28

Prepared by Current Affairs IndiaPublished 1 October 20263 min read

Official release text

Text from Press Information Bureau. Statements and views below are those of the issuing institution. Figures, linked documents and attachments are available in the original release.Source publication: 30 SEP 2026 3:19PM by PIB Delhi

The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Shri Narendra Modi, has approved the increase in the Minimum Support Prices (MSP) for all mandated Rabi Crops for Marketing Season 2027-28.

Government has increased the Minimum Support Prices (MSP) of Rabi Crops for Marketing Season 2027-28, to ensure remunerative prices to the growers for their produce. The absolute highest increase in MSP has been announced for Safflower at Rs.675 per quintal followed by Rapeseed & Mustard at Rs.413 per quintal. 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.

Minimum Support Prices for all Rabi crops for Marketing Season 2027-28

(Rs.per quintal)

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

*Refers to cost which 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 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 expected margin over All-India weighted average cost of production is 106 percent for wheat, followed by 96 percent for rapeseed & mustard; 92 per cent for lentil; 59 per cent for gram; 58 percent for barley; and 50 percent 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 3715 LMT as compared to 2254 LMT during 2004-05 to 2013-14. The procurement of 6 Rabi crops during 2014-15 to 2025-26 has increased to 3921 LMT as compared to 2302 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. The MSP amount paid to 6 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.

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