Cabinet hikes MSP for rabi crops, sets aside Rs 91,000 crore; safflower sees biggest rise

Fresh updates from the financial markets indicate that The Centre on Wednesday approved an gain in the Minimum Backing Prices (MSP) for all six mandated rabi crops for the 2027-28 marketing season.

The decision was taken by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi.

The highest gain is for safflower at Rs 675 per quintal, followed by rapeseed and mustard at Rs 413. MSP for lentil (masur) has been boosted by Rs 390, barley by Rs 136, gram by Rs 83 and wheat by Rs 25 per quintal.

Wheat MSP has been increased to Rs 2,610 per quintal from Rs 2,585, while barley MSP is now Rs 2,286. Gram MSP has been boosted to Rs 5,958, masur to Rs 7,390, rapeseed and mustard to Rs 6,613 and safflower to Rs 7,215 per quintal.

The anticipated margin over the all-India weighted average cost of production is 106% for wheat, 96% for rapeseed and mustard, 92% for lentil, 59% for gram, 58% for barley and 50% for safflower.

The government stated the MSP revisions are in line with the Union Budget 2018-19 decision to fix MSP at least 1.5 times the all-India weighted average cost of production. It further noted that elevated MSPs for pulses and oilseeds are aimed at encouraging crop diversification.

The MSP paid to wheat farmers during 2014-15 to 2025-26 stood at Rs 7.31 lakh crore, compared with Rs 2.56 lakh crore during 2004-05 to 2013-14. For all six rabi crops, MSP payments rose to Rs 8.36 lakh crore from Rs 2.65 lakh crore over the corresponding periods.