The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the increase in the Minimum Support Prices (MSP) for 14 kharif crops for Marketing Season 2026-27. This decision was taken to ensure remunerative prices to farmers.
As per an official statement issued on Wednesday, May 13, the government has recommended the highest absolute increase in MSP over the previous year for sunflower seed at ₹622 per quintal, followed by cotton (₹557 per quintal), nigerseed (₹515 per quintal), and sesamum (₹500 per quintal).
The announcement regarding the hike in MSP for kharif crops for Marketing Season 2026-27 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times of the all-India weighted average cost of production.
Notably, the expected margin to farmers over their cost of production has been estimated to be highest in the case of moong (61 per cent). It is followed by bajra (56 per cent), maize (56 per cent), and tur/arhar (54 per cent). For the remaining crops, the margin to farmers over their cost of production has been estimated to be at 50 per cent, the official statement said.
In recent times, the central government has promoted the cultivation of crops other than cereals, like pulses and oilseeds, and nutri-cereals/’Shree Anna’, by offering a higher MSP for these crops, IANS reported.
From 2014-15 to 2025-26, the MSP amount paid to paddy-growing farmers stood at ₹16.08 lakh crore. During the period 2004-05 to 2013-14, the amount paid to farmers was ₹4.44 lakh crore.
Similarly, the MSP amount paid for 14 kharif crops-growing farmers was ₹18.99 lakh crore from 2014-15 to 2025-26, while it stood at ₹4.75 lakh crore for the 2004-05 to 2013-14 period.
Moreover, the procurement of paddy was at 8418 lakh metric tonnes (LMT) between 2014-15 to 2025-26, while during the period 2004-05 to 2013-14, procurement of paddy was 4590 LMT.