Cabinet approves increase in MSP for 14 Kharif crops for 2026-27

The Union Cabinet approved MSPs for 14 Kharif crops for the 2026-27 marketing season, with a total MSP payout of ₹2.60 lakh crore to farmers, based on recommendations of the Commission for Agricultural Costs and Prices (CACP). The decision upholds the policy of MSP at least 50% above the cost of production and aligns with the Budget 2018-19 framework for MSP being at least 1.5 times the all-India weighted average cost of production. The Cabinet presentation notes margins over cost of production, highest for moong at 61%, followed by bajra and maize at 56% each, tur/arhar at 54%, and around 50% for the remaining crops. Specific MSPs include paddy common ₹2,441 per quintal, paddy Grade A ₹2,461, tur ₹8,450, moong ₹8,780, urad ₹8,200, groundnut ₹7,517, sunflower ₹8,343, soybean ₹5,708, and sesame ₹10,346 per quintal. The government expects annual procurement of 824.41 LMT under MSP, and notes a rise in MSP payouts and procurement over the last decade. It emphasizes continued promotion of pulses, oilseeds and Shree Anna through higher MSPs, with past procurement data showing paddy procurement rising from 4,590 LMT (2004-05 to 2013-14) to 8,418 LMT (2014-15 to 2025-26), and MSP payments increasing accordingly.

A key decision in 2019 established that MSP would be fixed at least 50% above the cost of production, a principle highlighted by the government in cabinet statements and presentations.

The Union Budget for 2018-19 announced that MSP would be fixed at least 1.5 times the all-India weighted average cost of production, guiding MSP policy decisions for subsequent years.