Strengthening farmer incomes ahead of the Kharif sowing season, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on May 13 approved higher Minimum Support Prices (MSP) for 14 Kharif crops for the 2026-27 marketing season.
The revised MSPs include substantial increases for oilseeds, pulses, millets and cotton, with the government stating that the move is intended to ensure remunerative returns to farmers while encouraging crop diversification and boosting domestic agricultural production.
Among all crops, sunflower seed recorded the highest absolute increase in MSP, with a hike of Rs 622 per quintal. Cotton witnessed the second-highest increase at Rs 557 per quintal, followed by nigerseed at Rs 515 and sesamum at Rs 500 per quintal.
For paddy, one of India’s most widely cultivated Kharif crops, the MSP for common variety has been increased from Rs 2,369 per quintal to Rs 2,441 per quintal for the 2026-27 season, marking an increase of Rs 72 per quintal. The MSP for Grade A paddy has been fixed at Rs 2,461 per quintal.
The government has also announced revised MSPs for other major cereals and nutri-cereals. Maize will now have an MSP of Rs 2,410 per quintal, while bajra has been fixed at Rs 2,900 per quintal. Ragi, one of the key “Shree Anna” or nutri-cereal crops promoted by the Centre, will now fetch Rs 5,205 per quintal.
In the pulses category, the MSP for tur/arhar has been raised to Rs 8,450 per quintal, moong to Rs 8,780 per quintal, and urad to Rs 8,200 per quintal. The government has consistently emphasised increasing domestic pulse production to reduce dependence on imports and improve nutritional security.
Oilseed crops also saw notable increases under the revised MSP structure. Sunflower seed MSP has been fixed at Rs 8,343 per quintal, soybean at Rs 5,708, sesamum at Rs 10,346, groundnut at Rs 7,517 and nigerseed at Rs 10,052 per quintal.
Cotton farmers are also expected to benefit from the revised rates. The MSP for medium staple cotton has been fixed at Rs 8,267 per quintal, while long staple cotton will now fetch Rs 8,667 per quintal.
The Ministry of Agriculture and Farmers Welfare said the revised MSPs are in line with the Union Budget 2018-19 announcement, under which MSPs are fixed at a minimum of 1.5 times the all-India weighted average cost of production. The policy is aimed at ensuring farmers receive a reasonable margin over cultivation costs.
According to official estimates, farmers cultivating moong are expected to receive the highest margin over production cost at 61 per cent. Bajra and maize are projected to provide margins of 56 per cent each, while tur/arhar is expected to offer a 54 per cent margin. For the remaining crops, the margin over production cost is estimated to be around 50 per cent.
The Centre said it has continued to encourage cultivation of pulses, oilseeds and nutri-cereals by offering relatively higher MSP hikes compared to cereals. Officials believe this strategy will help improve crop diversification, strengthen nutritional security and reduce import dependence on edible oils and pulses.
The Ministry also highlighted the sharp increase in procurement operations and MSP payments during the last decade. According to official figures, paddy procurement between 2014-15 and 2025-26 stood at 8,418 lakh metric tonnes (LMT), compared to 4,590 LMT during the period from 2004-05 to 2013-14.
Similarly, procurement of all 14 Kharif crops during the last decade reached 8,746 LMT, nearly double the 4,679 LMT recorded in the previous ten-year period.
The government further stated that MSP payments to paddy farmers during 2014-15 to 2025-26 touched Rs 16.08 lakh crore, significantly higher than the Rs 4.44 lakh crore paid during 2004-05 to 2013-14.
For all 14 Kharif crops combined, total MSP payments over the last decade stood at Rs 18.99 lakh crore, compared to Rs 4.75 lakh crore during the previous decade.
The Centre said the revised MSPs are part of a broader strategy to ensure income security for farmers, increase agricultural productivity, promote sustainable crop patterns and strengthen India’s rural economy.
