New Delhi: In a major relief for farmers ahead of the Kharif sowing season, the Cabinet Committee on Economic Affairs (CCEA), chaired by Narendra Modi, on Wednesday approved higher Minimum Support Prices (MSP) for 14 Kharif crops for the 2026-27 marketing season.
The decision is aimed at ensuring better returns and income security for cultivators and is expected to result in a total payout of around ₹2.6 lakh crore to farmers across the country.
Announcing the Cabinet decisions, Ashwini Vaishnaw said the revised MSPs continue the government’s policy of providing at least 50 per cent profit over the cost of production.
“Ever since Prime Minister Narendra Modi took charge in 2014, one major decision after another has been taken in the interest of farmers. MSP is being fixed by adding at least 50 per cent profit over the total cost of cultivation,” Vaishnaw said.
Paddy MSP Increased to ₹2,441 Per Quintal
Among the key announcements, the MSP for Paddy has been increased by ₹72 to ₹2,441 per quintal for the 2026-27 Kharif marketing season.
The government said the revised MSPs are based on the principle introduced in 2019 to guarantee remunerative prices to farmers by ensuring a minimum 50 per cent margin over production costs.
Sunflower Seed Gets Highest MSP Hike
The largest absolute increase among Kharif crops was approved for Sunflower seed, whose MSP was raised by ₹622 per quintal to ₹8,343.
Other major increases include:
- Cotton: ₹557 increase; MSP fixed at ₹8,267 (medium staple) and ₹8,667 (long staple)
- Nigerseed: ₹515 increase
- Sesamum: ₹500 increase; MSP fixed at ₹10,346 per quintal
Highest Profit Margin for Moong Farmers
The government stated that farmers cultivating Moong are expected to receive the highest margin over production cost at 61 per cent.
Other estimated margins include:
- Bajra: 56 per cent
- Maize: 56 per cent
- Tur / Arhar: 54 per cent
For the remaining Kharif crops, the margin over production cost is estimated at around 50 per cent.
Focus on Pulses, Oilseeds and Shree Anna
The Centre said the higher MSP increases for pulses and oilseeds are intended to encourage crop diversification, reduce import dependence and boost domestic production.
The policy also supports the cultivation of nutri-cereals, popularly known as Shree Anna, which have been promoted as nutritious and climate-resilient crops.
MSP Payments to Farmers Rise Sharply Over the Last Decade
The government highlighted significant growth in procurement and MSP payments over the past decade.
Paddy Procurement
- 2014-15 to 2025-26: 8,418 lakh metric tonnes (LMT)
- 2004-05 to 2013-14: 4,590 LMT
MSP Payments to Paddy Farmers
- 2014-15 to 2025-26: ₹16.08 lakh crore
- 2004-05 to 2013-14: ₹4.44 lakh crore
Total MSP Payments for 14 Kharif Crops
- 2014-15 to 2025-26: ₹18.99 lakh crore
Aligned with Budget 2018-19 Commitment
The enhanced MSPs are in line with the Union Budget 2018-19 announcement to fix MSPs at 1.5 times the all-India weighted average cost of production.
The government said the policy is aimed at strengthening farmer incomes, improving rural prosperity and ensuring sustainable agricultural growth.
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