MSP hike for rabi crops 2026-27: Government increases Minimum Support Prices for wheat, safflower, pulses, and more, boosting farmers’ income and supporting crop diversification.
Government Hikes Minimum Support Prices (MSP) for Rabi Crops – 2026-27 Marketing Season
Introduction: A Strategic Move to Support Farmers
On October 1, 2025, the Union Cabinet of India approved an increase in the Minimum Support Prices (MSP) for six major rabi crops for the 2026-27 marketing season. This decision aims to provide economic support to farmers, ensuring remunerative prices for their produce and encouraging crop diversification. The MSP hikes are part of the government’s broader strategy to enhance agricultural incomes and stabilize food prices.
Details of the MSP Hike
The approved MSPs for the 2026-27 marketing season are as follows:
- Wheat: ₹2,585 per quintal (up from ₹2,425, a 6.6% increase)
- Barley: ₹2,150 per quintal (up from ₹1,980, an 8.6% increase)
- Gram (Chana): ₹5,875 per quintal (up from ₹5,650, a 4.0% increase)
- Lentil (Masur): ₹7,000 per quintal (up from ₹6,700, a 4.5% increase)
- Rapeseed & Mustard: ₹6,200 per quintal (up from ₹5,950, a 4.2% increase)
- Safflower: ₹6,540 per quintal (up from ₹5,940, a 10.1% increase)
These hikes are designed to ensure that farmers receive prices that are at least 1.5 times their cost of production, aligning with the Union Budget 2018-19 announcement. The expected margin over the all-India weighted average cost of production is 109% for wheat, 93% for rapeseed & mustard, 89% for lentil, 59% for gram, 58% for barley, and 50% for safflower.
Government’s Broader Agricultural Strategy
In addition to the MSP hikes, the government has approved a ₹11,000 crore, six-year plan under the National Pulses Mission to boost pulses production. This initiative aims to improve domestic availability of pulses, reduce dependency on imports, and support farmers in achieving better yields and income.
Why This News Is Important
Impact on Farmers’ Income
The MSP hikes are expected to significantly enhance farmers’ income by providing them with remunerative prices for their produce. For instance, the increase in wheat MSP offers the highest gain over cost of production at 109%, ensuring better profitability for wheat growers.
Encouragement for Crop Diversification
The substantial increase in the MSP for safflower (10.1%) reflects the government’s emphasis on promoting oilseed cultivation and crop diversification. This move aims to reduce dependency on imported edible oils and encourage farmers to diversify their cropping patterns
Alignment with Union Budget Announcement
The MSP hikes align with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times the all-India weighted average cost of production. This policy ensures that farmers receive fair prices for their produce, contributing to their economic welfare.
Support for Pulses Production
The approval of the ₹11,000 crore National Pulses Mission underscores the government’s commitment to enhancing pulses production. This initiative aims to improve domestic availability, reduce imports, and support farmers in achieving better yields and income.
Limited Impact on Inflation
According to a report by ICICI Bank Global Markets, the recent increase in MSPs for six rabi crops is expected to have only a limited effect on retail inflation. The report indicates that retail prices remain stable, suggesting that the MSP hikes will not significantly disrupt inflation trends.
Historical Context
Evolution of MSP Policy
The concept of Minimum Support Price (MSP) was introduced by the Government of India in 1966-67 to ensure that farmers receive a fair price for their produce. Over the years, the MSP policy has been expanded to cover various crops, with periodic revisions to reflect changes in production costs and market conditions. The recent MSP hikes for rabi crops are in line with this ongoing effort to support farmers and stabilize agricultural markets.
Previous MSP Revisions
In the past, MSPs have been revised to address issues such as inflation, changes in production costs, and to incentivize the cultivation of specific crops. For example, in 2018, the government announced a 1.5 times increase in MSP over the cost of production for certain crops, a policy that continues to guide current MSP revisions.
Key Takeaways from “Government Hikes Minimum Support Prices for Rabi Crops”
| No. | Key Takeaway |
|---|---|
| 1 | Wheat MSP increased by ₹160 to ₹2,585/quintal, marking a 6.6% rise. |
| 2 | Safflower MSP saw the highest absolute increase of ₹600 per quintal, a 10.1% rise. |
| 3 | The MSP hikes ensure farmers receive prices at least 1.5 times their cost of production, aligning with the Union Budget 2018-19 announcement. |
| 4 | The government approved a ₹11,000 crore National Pulses Mission to boost pulses production. |
| 5 | ICICI Bank report indicates that the MSP hikes will have a limited impact on retail inflation, with stable retail prices. |
FAQs: Frequently Asked Questions
1. What is the Minimum Support Price (MSP)?
The Minimum Support Price (MSP) is the price at which the Government of India purchases crops from farmers, ensuring them a minimum profit for their produce, regardless of market fluctuations.
2. Which rabi crops have received an MSP hike for 2026-27?
The MSP for six rabi crops has been hiked: Wheat, Barley, Gram (Chana), Lentil (Masur), Rapeseed & Mustard, and Safflower.
3. What is the percentage increase in MSP for wheat?
The MSP for wheat has been increased by 6.6%, from ₹2,425 to ₹2,585 per quintal.
4. How does the government ensure MSP benefits farmers?
MSP is fixed at least 1.5 times the cost of production, ensuring farmers earn a fair income and covering production costs.
5. What is the National Pulses Mission?
It is a government initiative with a budget of ₹11,000 crore over six years to increase pulses production, improve yields, and reduce dependence on imports.
6. Why has safflower MSP increased the most?
The MSP for safflower increased by 10.1% to encourage oilseed cultivation and crop diversification, reducing dependency on imported edible oils.
7. Will the MSP hike affect retail inflation?
According to ICICI Bank reports, the impact on retail inflation is expected to be limited, with stable retail prices.
8. When was MSP first introduced in India?
MSP was first introduced in India in the 1966-67 period to protect farmers against price fluctuations and ensure fair income.
9. How does MSP impact crop diversification?
Higher MSPs for certain crops like safflower and pulses incentivize farmers to grow a variety of crops rather than focusing on a few staples.
10. How can this news be useful for government exam aspirants?
This news is relevant for exams like UPSC, SSC, RRB, banking, and state PCS, as it relates to agriculture policies, government schemes, and economic reforms.
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