Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday (September 1, 2025) approved a hike in the Minimum Support Prices (MSP) for all mandated Rabi crops for the marketing season 2026-27. The move is aimed at ensuring that farmers receive remunerative prices and are encouraged to diversify their crop choices ahead of the upcoming sowing cycle.
According to the official statement, the highest increase has been given to safflower, with a hike of Rs 600 per quintal, taking its MSP to Rs 6,540. The MSP of lentil (masur) has been raised by Rs 300 to Rs 7,000 per quintal. Rapeseed and mustard will now be procured at Rs 6,200 per quintal after an increase of Rs 250, while gram has been raised by Rs 225 to Rs 5,875 per quintal. Among cereals, the MSP of barley has been increased by Rs 170 to Rs 2,150 per quintal, and wheat by Rs 160 to Rs 2,585 per quintal.
Union Agriculture Minister Shivraj Singh Chouhan thanked Prime Minister on behalf of farmers, noting that the decision would have long-term positive impacts on food and nutritional security, farmers’ welfare, and agricultural growth. He underlined that the government has aligned resources and schemes with farmers’ interests as its top priority.
This decision is in line with the government’s 2018-19 budget promise to fix MSPs at a minimum of 1.5 times the all-India weighted average cost of production. Data shows that farmers will now earn a margin of 109% on wheat, 93% on rapeseed and mustard, 89% on lentil, 59% on gram, 58% on barley, and 50% on safflower.
The cost of production considered for MSP covers a wide range of expenses, including labour, seeds, fertilizers, irrigation, machinery, fuel, and even the imputed value of family labour.
The revised MSPs are also expected to encourage farmers to shift towards pulses and oilseeds, sectors where India remains heavily dependent on imports.
