CCEA approves higher MSP for Kharif crops, major hike for oilseeds and cotton

‎Addressing reporters after the Cabinet meeting, Union Information and Broadcasting Minister Ashwini Vaishnaw said the revised MSPs were intended to ensure “remunerative prices” for farmers while adhering to the government’s policy of fixing MSPs at least 1.5 times the weighted average cost of production.

‎“The government has increased the MSP of Kharif crops for Marketing Season 2026-27 to ensure remunerative prices to the growers for their produce,” Vaishnaw said.

Advertisement

‎As per the Cabinet decision, sunflower seed registered the steepest increase in MSP, rising by Rs 622 per quintal to Rs 8,343. Cotton MSP was increased by Rs 557 per quintal, while nigerseed and sesamum saw hikes of Rs 515 and Rs 500 per quintal, respectively.

‎The MSP for common paddy was raised by Rs 72 to Rs 2,441 per quintal, while Grade A paddy was fixed at Rs 2,461 per quintal for the upcoming Kharif marketing season.

‎Among pulses, the MSP for tur/arhar 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. In the oilseeds category, soybean MSP was raised by Rs 380 to Rs 5,708 per quintal and groundnut by Rs 254 to Rs 7,517 per quintal.

‎For coarse cereals and nutri-cereals, also promoted as Shree Anna, the MSP for bajra was fixed at Rs 2,900 per quintal, maize at Rs 2,410, ragi at Rs 5,205 and hybrid jowar at Rs 4,023 per quintal.

‎The government said the revised MSP structure remained consistent with the announcement made in the Union Budget 2018-19 to ensure MSPs at a minimum of 1.5 times the all-India weighted average cost of production. Estimated returns over production cost are 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 around 50 per cent.

‎Officials said the MSP revisions were also aimed at encouraging cultivation of pulses, oilseeds and nutri-cereals to reduce import dependence and improve crop diversification.

‎The Cabinet note highlighted a sharp rise in procurement operations and MSP payouts over the last decade. Paddy procurement during 2014-15 to 2025-26 stood at 8,418 lakh metric tonnes, compared to 4,590 lakh metric tonnes during 2004-05 to 2013-14.

‎Procurement of all 14 Kharif crops increased to 8,746 lakh metric tonnes in the last decade from 4,679 lakh metric tonnes in the preceding ten-year period.

‎According to government data, 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 between 2004-05 and 2013-14. Total MSP payments to farmers growing the 14 Kharif crops increased to Rs 18.99 lakh crore during the same period, up from Rs 4.75 lakh crore earlier.

‎Officials said the enhanced MSPs would help provide price assurance to farmers amid rising cultivation costs while strengthening domestic production of pulses and edible oil crops, areas where India continues to rely heavily on imports.