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.
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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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