The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an increase in the Minimum Support Prices (MSPs) for all six mandated Rabi crops for the 2027-28 marketing season. The government said the decision is aimed at ensuring remunerative prices for farmers and encouraging crop diversification.
The revised MSPs cover wheat, barley, gram, lentil (masur), rapeseed and mustard, and safflower. Among the six crops, safflower received the highest absolute increase at Rs 675 per quintal, while wheat saw the smallest increase of Rs 25 per quintal.
Safflower Gets Highest MSP Increase
The MSP for safflower has been raised by Rs 675 per quintal, from Rs 6,540 to Rs 7,215 for the 2027-28 marketing season. The increase is the largest among the six Rabi crops covered by the decision.
Rapeseed and mustard received the second-highest increase, with the MSP rising by Rs 413 to Rs 6,613 per quintal. Lentil, or masur, received an increase of Rs 390, taking its MSP to Rs 7,390 per quintal.
The higher increases for oilseeds and pulses are part of the government’s stated effort to encourage farmers to diversify their crop choices.
New MSP Rates for Six Rabi Crops
The revised MSPs for the 2027-28 marketing season are:
| Crop | MSP 2027-28 | Increase |
|---|---|---|
| Wheat | Rs 2,610/quintal | Rs 25 |
| Barley | Rs 2,286/quintal | Rs 136 |
| Gram | Rs 5,958/quintal | Rs 83 |
| Lentil (Masur) | Rs 7,390/quintal | Rs 390 |
| Rapeseed & Mustard | Rs 6,613/quintal | Rs 413 |
| Safflower | Rs 7,215/quintal | Rs 675 |
The figures were announced following the meeting of the Cabinet Committee on Economic Affairs (CCEA) on September 30.
Wheat Gets Modest Increase
The MSP for wheat, one of India’s major Rabi crops, has been increased by Rs 25 per quintal, from Rs 2,585 to Rs 2,610.
The increase is considerably smaller than the hikes announced for pulses and oilseeds. Recent reports have linked the modest wheat increase to elevated government stocks, while the government has highlighted the need to encourage production of crops such as pulses and oilseeds.
The government estimates that the revised wheat MSP represents a margin of 106 per cent over its all-India weighted average cost of production.
MSP Designed to Maintain 50% Margin
According to the government, the revised MSPs follow the policy announced in the Union Budget 2018-19 to fix MSP at a level of at least 1.5 times the all-India weighted average cost of production.
For the six crops, the estimated margin over the all-India weighted average cost of production ranges from 50 per cent for safflower to 106 per cent for wheat. Rapeseed and mustard have an estimated margin of 96 per cent, lentil 92 per cent, gram 59 per cent and barley 58 per cent.
The government said the policy is intended to provide remunerative prices to farmers while supporting agricultural production.
Focus on Pulses and Oilseeds
The relatively larger increases for pulses and oilseeds are significant in the context of the government’s efforts to promote crop diversification.
Rapeseed and mustard are important oilseed crops, while lentil and gram are major pulse crops. Higher MSPs for these crops could encourage farmers to allocate more acreage to them, although actual planting decisions also depend on factors such as rainfall, input costs, market prices and procurement arrangements.
The government has also linked higher MSPs for pulses and oilseeds with efforts to strengthen domestic production and reduce dependence on imports.
Estimated Government Payout
The revised Rabi MSP package is expected to involve an estimated payout of around Rs 90,962 crore during the 2027-28 marketing season, according to government figures reported after the Cabinet decision.
The announcement comes ahead of the Rabi sowing period, when farmers begin making decisions about crops to plant during the winter agricultural season.
With the latest revision, all six mandated Rabi crops will carry higher MSPs in the 2027-28 marketing season. The government has positioned the decision as part of its broader agricultural pricing policy, with particular emphasis on farmer remuneration and diversification towards pulses and oilseeds.