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Cabinet Approves Higher MSP for 14 Kharif Crops, Boosting Farmer Incomes

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved MSP increases for 14 kharif crops for the 2026-27 marketing season. Sunflower seed saw the highest absolute increase at Rs 622 per quintal, followed by cotton. The policy aligns with the 2018-19 budget promise of MSP at 1.5 times production cost, with moong farmers expected to get the highest margin. The government highlighted increased MSP payments and procurement volumes since 2014-15 compared to the previous decade.

Key Points: Cabinet Approves MSP Hike for 14 Kharif Crops

  • MSP for 14 kharif crops increased for 2026-27
  • Highest absolute hike for sunflower seed at Rs 622/quintal
  • Moong farmers to get highest margin at 61%
  • Government promoting pulses, oilseeds, and nutri-cereals
2 min read

Cabinet okays increase in MSP for 14 kharif crops

Prime Minister Modi-led cabinet approves MSP increase for 14 kharif crops, with highest hike for sunflower seed, aiming to boost farmer incomes.

"The increase 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. - Official Statement"

New Delhi, May 13

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved the increase in the Minimum Support Prices for 14 kharif crops for Marketing Season 2026-27 to ensure remunerative prices to farmers.

The highest absolute increase in MSP over the previous year has been recommended for sunflower seed at Rs 622 per quintal, followed by cotton (Rs 557 per quintal), nigerseed (Rs 515 per quintal), and sesamum (Rs 500 per quintal), according to an official statement issued on Wednesday.

The increase 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.

The expected margin to farmers over their cost of production is estimated to be highest in the case of moong (61 per cent), followed by bajra (56 per cent), maize (56 per cent), and tur/arhar (54 per cent). For the rest of the crops, the margin to farmers over their cost of production is estimated to be at 50 per cent, the statement said.

In recent years, the government has been promoting the cultivation of crops other than cereals, such as pulses and oilseeds, and nutri-cereals/'Shree Anna', by offering a higher MSP for these crops.

During the period 2014-15 to 2025-26, MSP amount paid to paddy-growing farmers was Rs 16.08 lakh crore, while during the period 2004-05 to 2013-14, the amount paid to farmers was Rs 4.44 lakh crore.

During 2014-15 to 2025-26, the MSP amount paid for 14 kharif crops-growing farmers was Rs 18.99 lakh crore, while during the period 2004-05 to 2013-14, the MSP amount paid to farmers was Rs 4.75 lakh crore.

During 2014-15 to 2025-26, procurement of paddy was at 8418 lakh metric tonnes (LMT), while during the period 2004-05 to 2013-14, procurement of paddy was 4590 LMT.

During the period 2014-15 to 2025-26, procurement of 14 kharif crops was 8,746 LMT, while during the period 2004-05 to 2013-14, procurement was 4,679 LMT, the statement added.

- IANS

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Reader Comments

P
Priya S
Finally, some attention to oilseeds! Sunflower seed getting Rs 622 per quintal hike is a good incentive. We need to reduce our dependence on imported edible oils. But why is the government still focusing so much on cereals? The data shows massive procurement of paddy - that's not sustainable for our water-scarce regions. Need more push for millets like bajra and jowar.
R
Ravi K
Great to see a 50% margin for most crops! But let's not forget that the cost of production includes everything from fertilizer to diesel, which has skyrocketed. The real benefit depends on how efficiently farmers can manage inputs. Also, the government should ensure timely procurement - last year in my area, many farmers had to wait months for payments.
S
Sarah B
Interesting comparison of procurement data between 2004-14 and 2014-26. The fourfold increase in paddy procurement from Rs 4.44 lakh crore to Rs 16.08 lakh crore shows serious commitment. But I wonder how much of this is due to inflation? Also, why not focus more on creating market infrastructure so farmers don't depend solely on MSP?
N
Naveen S
The government is promoting 'Shree Anna' (millets) but ground-level reality is different. In Telangana, we still see paddy monoculture despite repeated droughts. MSP for nutri-cereals is good on paper, but farmers need assured market linkages and processing facilities. Without that, these announcements are just election-year gimmicks. Still, better than nothing!
M
Michael C
The data shows impressive growth in procurement - from 4,

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