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Union Cabinet Hikes MSPs Of Six Rabi Crops For 2026–27 Marketing Season

Written by: Akshay ShivalkarUpdated on: 2 Oct 2025, 12:15 am IST
Government raises wheat MSP to ₹2,585 per quintal, with safflower receiving the highest absolute increase of ₹600 per quintal.
Union Cabinet Hikes MSPs Of Six Rabi Crops For 2026–27 Marketing Season
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The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday, October 1, approved an increase in the minimum support prices (MSPs) of six key rabi crops for the 2026–27 marketing season. Wheat, the most important winter crop, will see a 6.59% increase in its MSP to ₹2,585 per quintal, up from ₹2,425 in the previous season. The decision aims to support farmers with remunerative prices while encouraging crop diversification. 

Announcing the move, Information and Broadcasting Minister Ashwini Vaishnaw said the hikes were based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). He highlighted that the increases reflect the government’s continued commitment to ensuring MSPs remain at least 1.5 times the weighted average cost of production, a policy announced in the 2018–19 Union Budget. 

Crop-Wise MSP Hikes 

In absolute terms, safflower received the highest increase of ₹600 per quintal, bringing its MSP to ₹6,540, a 10% rise. Lentil (masoor) saw a ₹300 increase to ₹7,000 per quintal, up 4.5% from the previous year. The MSP for rapeseed and mustard was raised by ₹250 to ₹6,200, while gram (chana) rose ₹225 to ₹5,875 per quintal. For barley, the MSP has been fixed at ₹2,150, marking a rise of ₹170 or 8.6%. 

Wheat, which accounts for the largest share of rabi production, recorded a hike of ₹160 per quintal to ₹2,585. This 6.6% increase underlines its importance in both food security and procurement operations. 

MSP Comparison Table 

Crop 

MSP (2025–26) 

MSP (2024–25) 

Increase 

Change (%) 

Wheat 

₹2,585 

₹2,425 

₹160 

6.60% 

Barley 

₹2,150 

₹1,980 

₹170 

8.60% 

Chana 

₹5,875 

₹5,650 

₹225 

4.00% 

Masur 

₹7,000 

₹6,700 

₹300 

4.50% 

Mustard 

₹6,200 

₹5,950 

₹250 

4.20% 

Safflower 

₹6,540 

₹5,940 

₹600 

10.00% 

Margin Over Cost of Production 

According to official estimates, the margin over cost of production is highest for wheat at 109%, followed by mustard at 93% and lentil at 89%. Gram offers a 59% margin, barley 58%, and safflower 50%. These margins reflect the policy objective of ensuring returns well above input costs for farmers. 

Conclusion 

The MSP hikes for 2026–27 reinforce the government’s focus on farmer welfare and rural incomes. Wheat, lentil and safflower stand out with notable increases, balancing food security and diversification goals. With assured price margins well above production costs, the move aims to stabilise farmer earnings while promoting crop balance. The Cabinet’s decision highlights a continued emphasis on aligning support prices with long-term agricultural sustainability. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Oct 1, 2025, 6:41 PM IST

Akshay Shivalkar

Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.

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