The Union Cabinet on Wednesday approved the minimum support prices (MSP) for 14 Kharif crops for the 2026-27 marketing season, with a payout of ₹2.60 lakh crore to farmers. The decision was taken based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
The government in a press release said that the increase in MSP for Kharif crops is in line with the Union Budget 2018-19 announcement of fixing MSP at least 1.5 times the all-India weighted average cost of production.
According to the government, the estimated margin over cost of production is highest for moong at 61%, followed by bajra and maize at 56% each, and tur/arhar at 54%. For the remaining crops, the margin is estimated at 50%.
“A key decision was taken in 2019 to ensure farmers receive a fair return for their labour. The Prime Minister decided that MSP would be fixed at least 50% above the cost of production,” Union minister Ashwini Vaishnaw said. “The CACP estimates the cost of the crop properly by taking into account multiple factors like inflation.”
According to the Cabinet presentation, the government expects annual procurement of 824.41 lakh metric tonnes (LMT) under the MSP regime. The presentation also reiterated that MSP rates are fixed at least 50% above the cost of production, a policy adopted in 2019.
{{/usCountry}}According to the Cabinet presentation, the government expects annual procurement of 824.41 lakh metric tonnes (LMT) under the MSP regime. The presentation also reiterated that MSP rates are fixed at least 50% above the cost of production, a policy adopted in 2019.
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The MSP for common paddy is fixed at ₹2,441 per quintal, while Grade A paddy will be procured at ₹2,461 per quintal. Among pulses, tur (arhar) MSP has been set at ₹8,450 per quintal, moong at ₹8,780 and urad at ₹8,200.
For oilseeds, the MSP for groundnut has been fixed at ₹7,517 per quintal, sunflower seed at ₹8,343, soybean at ₹5,708 and sesame at ₹10,346 per quintal.
The government said it has been promoting cultivation of pulses, oilseeds and nutri-cereals or Shree Anna in recent years by offering higher MSP increases for these crops.
It also highlighted a rise in procurement and MSP payouts over the last decade.
Paddy procurement during 2014-15 to 2025-26 stood at 8,418 LMT, compared to 4,590 LMT during 2004-05 to 2013-14. Procurement of all 14 Kharif crops rose from 4,679 LMT in 2004-05 to 2013-14 to 8,746 LMT during 2014-15 to 2025-26.
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According to the government, MSP payments to paddy farmers increased from ₹4.44 lakh crore during 2004-05 to 2013-14 to ₹16.08 lakh crore during 2014-15 to 2025-26.
Total MSP payments to farmers growing 14 Kharif crops rose from ₹4.75 lakh crore to ₹18.99 lakh crore during the same period.