Cabinet Raises Wheat MSP by Just Rs 25 to Rs 2,610, Smallest Hike Among Rabi Crops

Safflower and mustard see the biggest MSP increases as the Cabinet approves new support prices for six rabi crops

September 30, 2026

Wheat MSP rises just Rs 25 to Rs 2,610 per quintal, a sharp slowdown from last year's Rs 160 increase

Rs 90,962 Crore Payout: Cabinet Clears New MSPs for Six Rabi Crops

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved higher Minimum Support Prices for all six mandated rabi crops for the 2027-28 marketing season on Wednesday, with wheat receiving the smallest increase of the lot at just Rs 25 per quintal, taking its MSP to Rs 2,610.

The wheat MSP had risen by Rs 160 per quintal for the current 2026-27 season, to Rs 2,585, making this year’s Rs 25 increase — a rise of under 1 per cent — a marked slowdown. Information and Broadcasting Minister Ashwini Vaishnaw announced the decision, noting that the production cost of wheat stands at Rs 1,264 per quintal, implying an expected margin of 106 per cent over production cost for the crop.

Oilseeds and pulses see sharper increases

While wheat’s hike was modest, the Cabinet gave considerably larger increases to oilseeds and pulses. The MSP for safflower was raised by Rs 675 to Rs 7,215 per quintal, the largest increase among all six crops, while rapeseed and mustard seed rose by Rs 413 to Rs 6,613 per quintal. Among pulses, masur (lentil) saw the steepest rise, up Rs 390 to Rs 7,390 per quintal, while gram increased by Rs 83 to Rs 5,958 per quintal. Barley’s support price was raised by Rs 136 to Rs 2,286 per quintal.

The government said the expected margin over production cost works out to 96 per cent for rapeseed and mustard, 92 per cent for lentil, 59 per cent for gram, 58 per cent for barley and 50 per cent for safflower.

Based on CACP recommendations

The revised MSPs were set based on recommendations from the Commission for Agricultural Costs and Prices, with the agriculture ministry factoring in production costs, El Niño-related concerns, and global and domestic price trends while finalising the numbers for all six rabi crops. The government said the revised prices remain consistent with the Union Budget 2018-19 commitment to fix MSPs at least 1.5 times the all-India weighted average cost of production.

The payout and the bigger picture

The total payout to farmers under the new MSPs is estimated at Rs 90,962 crore for 324 lakh tonnes of produce in the 2027-28 marketing year. Officials also highlighted longer-term procurement trends, noting that wheat procurement between 2014-15 and 2025-26 totalled 3,715 lakh metric tonnes, compared with 2,254 lakh metric tonnes in the preceding decade, with the MSP amount paid to wheat growers over that period rising to Rs 7.31 lakh crore from Rs 2.56 lakh crore in the earlier decade.

The agriculture ministry has set a wheat production target of 121 million tonnes for the 2026-27 crop year. Wheat, the principal rabi cereal, is typically sown from October and harvested from April.

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