The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved higher minimum support prices (MSP) for 14 Kharif crops for the 2026-27 marketing season, with sunflower seed, cotton, nigerseed, and sesamum receiving the steepest increases.
Revised MSPs Aim to Ensure Remunerative Prices
The government stated that the revised MSPs are designed to ensure remunerative prices for farmers while continuing the policy of fixing support prices at least 1.5 times the all-India weighted average cost of production.
Key Increases in MSP
Sunflower seed recorded the highest absolute increase in MSP at Rs 622 per quintal, taking the support price to Rs 8,343 per quintal from Rs 7,721 last year. Cotton MSP was raised by Rs 557 per quintal, while nigerseed saw an increase of Rs 515 and sesamum Rs 500 per quintal.
Among cereals, MSP for common paddy was increased by Rs 72 to Rs 2,441 per quintal from Rs 2,369 last year, while Grade A paddy MSP was raised by the same amount to Rs 2,461 per quintal.
Hybrid jowar MSP was increased by Rs 324 to Rs 4,023 per quintal and bajra by Rs 125 to Rs 2,900 per quintal. Ragi MSP was raised by Rs 319 to Rs 5,205 per quintal, while maize registered the smallest increase of Rs 10, taking MSP to Rs 2,410 per quintal.
Among pulses, tur/arhar MSP was increased by Rs 450 to Rs 8,450 per quintal, urad by Rs 400 to Rs 8,200, and moong by Rs 12 to Rs 8,780 per quintal.
Detailed MSP Table
- Paddy (Common): Rs 2,441 (+Rs 72, +86% since 2013-14)
- Paddy (Grade A): Rs 2,461 (+Rs 72, +83%)
- Jowar (Hybrid): Rs 4,023 (+Rs 324, +168%)
- Jowar (Maldandi): Rs 4,073 (+Rs 324, +168%)
- Bajra: Rs 2,900 (+Rs 125, +132%)
- Ragi: Rs 5,205 (+Rs 319, +247%)
- Maize: Rs 2,410 (+Rs 10, +84%)
- Tur/Arhar: Rs 8,450 (+Rs 450, +97%)
- Moong: Rs 8,780 (+Rs 12, +95%)
- Urad: Rs 8,200 (+Rs 400, +91%)
- Groundnut: Rs 7,517 (+Rs 254, +88%)
- Sunflower Seed: Rs 8,343 (+Rs 622, +125%)
- Soybean (Yellow): Rs 5,708 (+Rs 380, +123%)
- Sesamum: Rs 10,346 (+Rs 500, +130%)
- Nigerseed: Rs 10,052 (+Rs 515, +187%)
- Cotton (Medium Staple): Rs 8,267 (+Rs 557, +123%)
- Cotton (Long Staple): Rs 8,667 (+Rs 557, +117%)
Oilseeds and Cotton Details
For oilseeds, groundnut MSP was raised by Rs 254 to Rs 7,517 per quintal, soybean by Rs 380 to Rs 5,708, sesamum by Rs 500 to Rs 10,346, and nigerseed by Rs 515 to Rs 10,052 per quintal. Cotton MSP for medium staple variety was increased to Rs 8,267 per quintal, while long staple cotton MSP was fixed at Rs 8,667 per quintal.
Long-Term MSP Trends
The government also highlighted the longer-term rise in MSPs since 2013-14. Ragi registered one of the sharpest percentage increases over the past decade, with MSP rising by Rs 3,705 per quintal or 247 per cent since 2013-14. Nigerseed MSP increased by Rs 6,552 or 187 per cent during the same period, while jowar MSP rose by 168 per cent.
MSP for bajra increased by Rs 1,650 per quintal or 132 per cent over 2013-14 levels, while sunflower seed MSP rose by Rs 4,643 or 125 per cent. Cotton MSP increased by more than 120 per cent over the same period.
Expected Margins Over Cost of Production
According to the government, expected margins over cost of production for 2026-27 are estimated to be highest for moong at 61 per cent, followed by bajra and maize at 56 per cent each, and tur/arhar at 54 per cent. Margins for the remaining crops are estimated at 50 per cent.
Government's Focus on Pulses, Oilseeds, and Nutri-Cereals
The Centre said it has been consistently encouraging cultivation of pulses, oilseeds, and nutri-cereals or 'Shree Anna' by offering comparatively higher MSP support for these crops.
Increase in Procurement and MSP Payouts
The government also highlighted a sharp increase in procurement and MSP payouts over the past decade. According to official data, paddy procurement stood at 8,418 lakh metric tonnes during 2014-15 to 2025-26 compared with 4,590 lakh metric tonnes during 2004-05 to 2013-14.
Total MSP payments to paddy farmers rose to Rs 16.08 lakh crore during 2014-15 to 2025-26 compared with Rs 4.44 lakh crore in the previous decade, while MSP payments across 14 Kharif crops increased to Rs 18.99 lakh crore from Rs 4.75 lakh crore, according to government figures.
