Cabinet Approves Substantial MSP Hike For Rabi Crops

In a bid to strengthen farmers’ earnings, the Union Cabinet sanctioned higher MSPs for all designated rabi crops for the 2026-27 marketing period.

The decision, approved by the CCEA under PM Modi, aims to support fair returns and diversify cultivation.

Details of MSP Increases

Among the rabi crops, safflower has received the steepest hike of Rs 600 per quintal. Lentil (Masur) follows with an increase of Rs 300 per quintal.

The MSP for rapeseed and mustard, gram, barley, and wheat has been raised to provide increases of Rs 250, Rs 225, Rs 170 and Rs 160 per quintal, respectively.

Authorities noted that these hikes are in accordance with the Union Budget 2018-19. It is directive to ensure MSP is at least 1.5 times the all-India weighted average production cost.

This year’s hike provides strong margins over the cost of production. Wheat farmers can expect the highest margin at 109 per cent.

Meanwhile, rapeseed and mustard growers will gain 93 per cent and lentil producers 89 per cent.

Gram and barley will fetch margins of 59 per cent and 58 per cent, while safflower offers 50 per cent over production costs.

According to authorities, the measure not only promises better returns but also inspires farmers to explore varied cropping options, avoiding over-reliance on a handful of staples.

Farmers’ costs for producing these crops include immediate expenses such as wages, rented land, seeds, fertilisers, irrigation and fuel.

It also includes indirect expenses like equipment depreciation, interest and family labour contributions. Pre-sowing MSP announcements guide informed crop planning.

India’s record production of rice, wheat, maize, groundnut, and soybean in 2024-25 provides the backdrop for this policy.

The Ministry of Agriculture has pegged kharif foodgrain production at 1,663.91 LMT and rabi production at 1,645.27 LMT.

The government’s decision to raise MSPs across rabi crops reflects its pledge to strengthen the farm sector, promote food security, and sustain millions of cultivators’ incomes.