The Cabinet Committee on Economic Affairs (CCEA) on Wednesday increased the minimum support price (MSP) for 14 kharif crops for the 2026-27 marketing season. The decision was announced in Bathinda, with significant hikes for key crops such as paddy and cotton.
Key MSP Hikes for Major Crops
The MSP for paddy grade A was raised by Rs 72 per quintal to Rs 2,461, up from Rs 2,389 in the previous season. For medium staple cotton, the MSP increased by Rs 557 to Rs 8,267 per quintal, while long staple cotton rose to Rs 8,667 per quintal. In the 2025-26 season, these were priced at Rs 7,710 and Rs 8,110, respectively.
Other crops also saw modest increases. The MSP for moong was raised by Rs 12 to Rs 8,780 per quintal, and maize saw a Rs 10 increase to Rs 2,410 per quintal.
Farmer Groups Express Dissatisfaction
Despite the hikes, farmer groups expressed dissatisfaction. BKU (Ekta-Ugrahan) president Joginder Singh Ugrahan stated that they have long demanded the MSP be fixed according to the C2+50% formula. This formula accounts for all production factors, including rent on leased land and interest on fixed capital.
"The Centre calculates costs using the A2+FL method (actual paid-out costs plus the imputed value of family labour) and adds a 50% margin. Farmers have been struggling for a legal right to an MSP based on the more comprehensive C2 costs," Ugrahan said.
Other farmer leaders, including Harinder Singh Lakhowal and Sarvan Singh Pandher of the Kisan Mazdoor Morcha, also termed the increase insufficient and urged the Centre to adopt the C2 formula.
The CCEA's decision comes amid ongoing demands from farmer unions for a legal guarantee of MSP based on the C2 formula, which they argue would better cover their production costs and ensure fair returns.
