The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved an increase in the Minimum Support Prices (MSP) for all mandated Rabi crops for the 2026-27 marketing season, ensuring remunerative prices for farmers and incentivising crop diversification.
The sharpest hike has been announced for safflower, with an increase of ₹600 per quintal, followed by lentil (masur) at ₹300 per quintal. The MSP of rapeseed and mustard has been raised by ₹250 per quintal, gram by ₹225 per quintal, barley by ₹170 per quintal, and wheat by ₹160 per quintal.
With this revision, the MSP for wheat has been fixed at ₹2,585 per quintal, barley at ₹2,150, gram at ₹5,875, lentil (Masur) at ₹7,000, rapeseed & mustard at ₹6,200, and safflower at ₹6,540.
The government said the hikes are in line with the Union Budget 2018-19 commitment to fix MSPs at least 1.5 times the All-India weighted average cost of production. Based on this formula, the expected margins over cost of production stand at 109% for wheat, 93% for rapeseed and mustard, 89% for lentil, 59% for gram, 58% for barley, and 50% for safflower.
The revised MSPs will not only provide farmers with remunerative returns but also encourage crop diversification, contributing to greater resilience in India’s agricultural economy.