Cabinet Approves Hike In MSP For Rabi Crops

(MENAFN- IANS) New Delhi, Oct 1 (IANS) The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved the increase in the minimum support prices (MSP) for all mandated rabi crops for the 2026-27 marketing season to ensure remunerative prices to the growers for their produce.

The highest increase in MSP has been announced for Safflower at Rs 600 per quintal, followed by Lentil (Masur) at Rs 300 per quintal. For rapeseed and mustard, gram, barley, and wheat, there is an increase of Rs 250 per quintal, Rs 225 per quintal, Rs 170 per quintal and Rs 160 per quintal, respectively.

The increase in MSP for mandated Rabi Crops for Marketing Season 2026-27 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times the All-India weighted average cost of production.

The expected margin over the All-India weighted average cost of production is 109 per cent for wheat, followed by 93 per cent for rapeseed and mustard; 89 per cent for lentil; 59 per cent for gram; 58 per cent for barley; and 50 per cent for safflower. This increased MSP of rabi crops will ensure remunerative prices to the farmers and incentivise crop diversification.

The cost of production for these crops 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, an official statement explained.

The minimum support prices are announced well ahead of the sowing season as farmers can accordingly draw up their cropping plans to maximise their earnings.

Meanwhile, India has achieved a record production of rice, wheat, maize, groundnut and Soybean during 2024-25, according to estimates compiled by the Ministry of Agriculture and Farmers' Welfare.

The country's kharif foodgrain production is estimated at 1663.91 lakh metric tonnes (LMT), and rabi foodgrain production is estimated at 1645.27 LMT.

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