The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved an upward revision of the Minimum Support Prices (MSP) for all major rabi crops for the 2026-27 marketing season. The government said the decision underscores its commitment to ensuring fair returns for farmers and offers a strong push towards crop diversification in the upcoming sowing cycle.

Major Hikes for Safflower and Lentil

Among all crops, safflower has received the highest increase, with a hike of Rs 600 per quintal. Lentil (masur) follows with a rise of Rs 300 per quintal. The MSP for rapeseed and mustard has gone up by Rs 250 per quintal, gram by Rs 225 per quintal, barley by Rs 170 per quintal and wheat by Rs 160 per quintal. The revised prices are aligned with the government’s policy of fixing MSP at least 1.5 times higher than the national weighted average cost of production, a principle first announced in the Union Budget of 2018-19.

The cost calculations include the range of expenses borne by cultivators, such as wages for hired labour, use of machinery or bullock power, seeds, fertilisers, irrigation charges, depreciation of equipment, and the imputed value of family labour. The government stressed that factoring in all these costs ensures that the MSP reflects a truly remunerative rate for farmers.

Assured Margins for Farmers

With the new structure, wheat growers are expected to see the highest benefit, achieving a margin of 109 per cent over production costs. Rapeseed and mustard will fetch farmers a return of around 93 per cent, lentil 89 per cent, gram 59 per cent, barley 58 per cent, and safflower 50 per cent. This makes wheat the most profitable under the revised announcement, while oilseeds and pulses also receive significant support to promote balanced sowing.

The hikes come at a time when rising fertiliser, fuel and labour charges have increased the pressure on cultivators. By ensuring assured margins, the move reduces the chances of distress sales and strengthens rural incomes. Officials added that special attention to pulses and oilseeds will also lower India’s import dependence in these categories in the longer run.

Broader Economic and Agricultural Impact

Analysts believe the revised MSPs will support food security programmes by encouraging more wheat to flow into the Public Distribution System, ensuring buffer stock stability. At the same time, the increased rates for pulses and oilseeds are expected to help shift farmers away from traditional over-reliance on water-intensive crops like wheat and paddy, paving the way for more sustainable agriculture.

While the move is likely to result in higher procurement costs for agencies such as the Food Corporation of India, the government insists the measure is crucial to stabilising farm incomes, improving rural consumption, and protecting national food supplies. With the Cabinet approval, farmers are expected to sow with renewed confidence, supported by the assurance of fair prices in the market season ahead.

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