Cabinet approves higher MSP for rabi crops for 2027-28; wheat price raised by ₹25 per quintal

The government on Wednesday approved an increase in the Minimum Support Prices (MSP) for all mandated rabi crops for the 2027-28 marketing season, with safflower getting the highest hike of ₹675 per quintal.

The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.

The MSP for safflower has been raised to ₹7,215 per quintal from ₹6,540, while that for rapeseed and mustard has been increased by ₹413 to ₹6,613 per quintal.

The MSP for lentil (masur) has been raised by ₹390 to ₹7,390 per quintal.

The MSP for barley, gram and wheat has been increased by ₹136, ₹83 and ₹25 per quintal, respectively.

"The production cost of wheat is ₹1,264 per quintal, but MSP has been kept more than double at ₹2,610 per quintal for 2027-28," I&B Minister Ashwini Vaishnaw told reporters.

The new MSPs for the 2027-28 rabi marketing season are: wheat ₹2,610 per quintal, barley ₹2,286, gram ₹5,958, lentil ₹7,390, rapeseed and mustard ₹6,613, and safflower ₹7,215.

The government said the increase is in line with the Union Budget 2018-19 announcement of fixing MSP at a level of at least 1.5 times the all-India weighted average cost of production.

The expected margin over the all-India weighted average cost of production is 106% for wheat, 96% for rapeseed and mustard, 92% for lentil, 59% for gram, 58% for barley and 50% for safflower.

The government said the higher MSPs would provide remunerative prices to farmers and incentivise crop diversification.