Daijiworld Media Network - New Delhi
New Delhi, Oct 1: In a major move to support farmers and promote crop diversification, 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.
The highest MSP hike has been awarded to safflower, which will see an increase of Rs 600 per quintal. Lentil (Masur) follows with a Rs 300 per quintal rise, while rapeseed & mustard will fetch an additional Rs 250 per quintal. MSP for gram is up by Rs 225, barley by Rs 170, and wheat by Rs 160 per quintal.
This MSP revision is in line with the Union Budget 2018–19 policy of ensuring that MSPs are at least 1.5 times the All-India weighted average cost of production. This ensures not only a safety net for farmers but also incentivises better crop planning and diversification.
The expected profit margins over production costs are estimated at:
• Wheat: 109%
• Rapeseed & Mustard: 93%
• Lentil: 89%
• Gram: 59%
• Barley: 58%
• Safflower: 50%
These margins highlight the government's continued focus on making agriculture more lucrative, especially for small and marginal farmers.
The cost of production includes all out-of-pocket expenses such as labour (hired and family), machine use, lease rentals, inputs like seeds and fertilizers, irrigation, fuel, and other related costs, according to an official statement.
Announcing MSPs well before the sowing season allows farmers to make informed decisions about their cropping choices and optimise returns.
Meanwhile, India has recorded all-time high production of key crops in the 2024–25 agricultural year. According to the Ministry of Agriculture and Farmers’ Welfare:
• Kharif foodgrain production is estimated at 1,663.91 lac metric tonnes (LMT)
• Rabi foodgrain production is pegged at 1,645.27 LMT
This strong performance in both kharif and rabi seasons reflects the resilience of Indian agriculture and the impact of supportive policy measures.