Daijiworld Media Network - New Delhi
New Delhi, May 13: In a major policy decision, the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, has approved an upward revision in the Minimum Support Prices (MSP) for 14 kharif crops for the 2026–27 marketing season. The move is aimed at ensuring farmers receive remunerative and stable returns for their produce.
The decision was announced in New Delhi and comes as part of the government’s broader effort to strengthen agricultural income and encourage crop diversification beyond traditional cereals.
Sharpest MSP hikes for oilseeds and fibre crops
Among all crops, sunflower seed recorded the steepest increase in MSP at ?622 per quintal compared to the previous year. It was followed by cotton with an increase of ?557 per quintal, nigerseed at ?515 per quintal, and sesamum at ?500 per quintal.
Officials noted that the revised pricing structure is aligned with the principle announced in the Union Budget 2018–19, which states that MSP should be fixed at least 1.5 times the all-India weighted average cost of production.
Strong profit margins assured for farmers
The government has estimated healthy returns over production costs under the new MSP regime. The highest expected margins are projected for moong at 61%, followed by bajra and maize at 56% each, and tur (arhar) at 54%. For the remaining notified crops, farmers are expected to earn around 50% above production costs.
Push towards diversified agriculture
In recent years, policy focus has expanded beyond rice and wheat to encourage the cultivation of pulses, oilseeds, and nutri-cereals (also known as “Shree Anna”). Higher MSP incentives have been used as a key tool to promote this shift and improve nutritional diversity in agriculture.
Long-term procurement and payout trends
The government also highlighted significant growth in procurement and MSP payouts over the years:
• Between 2014–15 and 2025–26, total MSP payments for paddy farmers reached Rs 16.08 lakh crore, compared to Rs 4.44 lakh crore during 2004–05 to 2013–14.
• For 14 kharif crops, MSP payments stood at Rs 18.99 lakh crore in 2014–15 to 2025–26, up from Rs 4.75 lakh crore in the previous decade.
• Paddy procurement surged to 8,418 lakh metric tonnes (LMT) in 2014–15 to 2025–26, compared to 4,590 LMT in 2004–05 to 2013–14.
• Overall procurement of 14 kharif crops rose to 8,746 LMT from 4,679 LMT in the earlier period.
According to the statement, these figures reflect a sustained expansion in procurement operations and increased financial support to farmers through MSP mechanisms.