New Delhi: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved higher Minimum Support Prices (MSP) for all mandated Rabi crops for the 2027-28 marketing season.
The highest increase is for safflower, with its MSP raised by ₹675 per quintal to ₹7,215. The MSP for rapeseed and mustard has been increased by ₹413 to ₹6,613 per quintal.
The MSP for lentil (masur) has been raised by ₹390 to ₹7,390 per quintal, while barley gets an increase of ₹136 to ₹2,286. The MSP for gram has been increased by ₹83 to ₹5,958, and wheat by ₹25 to ₹2,610 per quintal.
MSP and production cost
According to the government, the revised MSPs provide margins over the all-India weighted average cost of production ranging from 50% for safflower to 106% for wheat.
The margin is 96% for rapeseed and mustard, 92% for lentil, 59% for gram and 58% for barley.
The government said the revisions are in line with the Union Budget 2018-19 decision to fix MSP at least 1.5 times the all-India weighted average cost of production.
The Centre said higher MSPs for pulses and oilseeds are also intended to encourage farmers to diversify beyond cereal cultivation.
Wheat procurement rises
Government data showed wheat procurement increased to 3,715 lakh tonnes during 2014-15 to 2025-26, compared with 2,254 lakh tonnes during 2004-05 to 2013-14.
Procurement of the six Rabi crops rose to 3,921 lakh tonnes during the same period, from 2,302 lakh tonnes earlier.
The MSP amount paid to wheat farmers during 2014-15 to 2025-26 stood at ₹7.31 lakh crore, compared with ₹2.56 lakh crore in 2004-05 to 2013-14. For all six Rabi crops, the corresponding amount increased to ₹8.36 lakh crore from ₹2.65 lakh crore.
