Minimum Support Prices (MSP) for Rabi Crops
Why in News?
On 30 September 2026, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved higher Minimum Support Prices (MSP) for all six mandated rabi crops for the Rabi Marketing Season (RMS) 2027–28.
Key Information
- The 1.5 Times Cost Mandate: The revised prices align directly with the Union Budget 2018–19 directive to fix MSPs at a level of at least 1.5 times the all-India weighted average cost of production.
- Targeted Return Margins: The approved MSPs guarantee a profit margin ranging between 50% and 106% over production costs. The highest margin return is for Wheat (106%), followed closely by Rapeseed & Mustard (96%) and Lentils (92%).
- Highest Absolute Increase: Safflower received the sharpest absolute hike, jumping by ₹675 per quintal, followed by Rapeseed & Mustard with an increase of ₹413 per quintal.
- Total Fiscal Support: The Union Government estimates an overall payout of ₹90,962 crore to farmers, targeting a procurement of 324 lakh metric tonnes (LMT) of produce during this marketing cycle.
- Crop Diversification Objective: By offering highly remunerative prices for oilseeds and pulses (like safflower, mustard, and lentils), the policy actively promotes crop diversification away from traditional, water-intensive staples.
| Rabi Crop | New MSP (2027–28) | Absolute Hike | Profit Margin Over Cost |
| Safflower | ₹7,215 | ₹675 | 50% |
| Lentil (Masur) | ₹7,390 | ₹390 | 92% |
| Rapeseed & Mustard | ₹6,613 | ₹413 | 96% |
| Gram (Chana) | ₹5,958 | ₹83 | 59% |
| Wheat | ₹2,610 | ₹25 | 106% |
| Barley | ₹2,286 | ₹136 | 58% |
What is Minimum Support Price (MSP)?
- Price Safety Net: MSP is a guaranteed price floor established by the Central Government. It acts as an agricultural safety net, ensuring that farmers do not suffer heavy financial losses even if market supplies surplus and open-market prices plummet.
- Formulation Bodies: The pricing is comprehensively assessed and recommended twice a year by the Commission for Agricultural Costs and Prices (CACP) before the respective sowing cycles. The final approval is executed by the Cabinet Committee on Economic Affairs (CCEA).
- Scope of Crops: The government officially announces MSP for 22 mandated crops (14 Kharif/monsoon crops, 6 Rabi/winter crops, and 2 commercial crops) alongside a Fair and Remunerative Price (FRP) specifically designated for sugarcane.
