**Executive Summary**
The Cabinet Committee on Economic Affairs (CCEA) approved an increase in Minimum Support Prices (MSP) for 14 Kharif crops for the 2026-27 Marketing Season on May 13, 2026. The decision aims to ensure remunerative prices for growers, fixing MSP at least 1.5 times the weighted average cost of production. Key focuses include promoting crop diversification and supporting the cultivation of pulses, oilseeds, and nutri-cereals.
**Key Points / Main Content**
* **Significant MSP Increases**
* The highest absolute increase in MSP over the previous year is for Sunflower Seed (₹622 per quintal).
* Other major increases include Cotton (₹557), Nigerseed (₹515), and Sesamum (₹500).
* Paddy (Common) MSP has increased to ₹2,441, representing an 86% increase over 2013-14 levels.
* **Profit Margins for Farmers**
* The expected margin over the cost of production is highest for Moong at 61%.
* Bajra and Maize offer an estimated margin of 56%, while Tur/Arhar offers 54%.
* For all other 14 Kharif crops, the margin over production cost is estimated at exactly 50%.
* **Strategic Agricultural Shifts**
* The government is actively promoting the cultivation of pulses, oilseeds, and Nutri-cereals (Shree Anna) through higher MSP incentives.
* This strategy aims to move production focus away from traditional cereals towards crops with higher nutritional value and market demand.
* **Historical Performance Data**
* Procurement of the 14 Kharif crops rose from 4,679 LMT (2004-2014) to 8,746 LMT (2014-2026).
* MSP payments to farmers for these crops increased from ₹4.75 Lakh Crore in the 2004-2014 period to ₹18.99 Lakh Crore during 2014-2026.
**Impact Analysis**
**Farmers (Growers)**
**Impact**
Farmers will receive guaranteed higher prices for their 2026-27 produce, ensuring a minimum profit of 50% over their calculated costs (including labor, rent, and inputs).
**Action Required**
Farmers should review the new MSP rates to plan their sowing for the Kharif season, particularly for high-margin crops like Moong and oilseeds.
**Government and Procurement Agencies**
**Impact**
These agencies face higher financial outlays and a continued trend of increasing procurement volumes, as evidenced by historical growth in paddy and Kharif crop procurement.
**Action Required**
Agencies must prepare for the 2026-27 marketing season to facilitate the procurement of the 14 approved crops at the revised rates.
Key Entities Referenced
Minimum Support Prices (MSP): The guaranteed price for 14 Kharif crops approved by the government to ensure remunerative returns for farmers' produce.
Cabinet Committee on Economic Affairs (CCEA): The primary cabinet body chaired by the Prime Minister responsible for approving the increase in crop support prices.
Union Budget 2018-19: The foundational policy document that established the mandate to fix MSP at a minimum of 1.5 times the weighted average cost of production.
Kharif Crops: The primary scope of the policy, encompassing 14 specific crops including cereals, pulses, oilseeds, and commercial crops for the 2026-27 marketing season.
Shree Anna (Nutri-cereals): A prioritized category of nutrient-rich crops being promoted by the government through higher MSP incentives to encourage crop diversification.
Cabinet Committee on Economic Affairs (CCEA)
Cabinet approves Minimum Support Prices
(MSP) for Kharif Crops for Marketing Season
2026-27
Posted On: 13 MAY 2026 3:23PM by PIB Delhi
The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Shri
Narendra Modi has approved the increase in the Minimum Support Prices (MSP) for 14 Kharif
Crops for Marketing Season 2026-27.
Government has increased the MSP of Kharif Crops for Marketing Season 2026-27, to ensure
remunerative prices to the growers for their produce. The highest absolute increase in MSP over
the previous year has been recommended for Sunflower Seed (₹ 622 per quintal) followed by
Cotton (Rs. 557 per quintal), Nigerseed (Rs.515 per quintal) and Sesamum (Rs.500 per quintal).
Minimum Support Prices for all Kharif crops for Marketing Season 2026-27:
(Rs.per quintal)
S. Margin MS MSP Increase
Crops MSP Cost* over MSP in 2026-27
No
2026- KMS cost
. 27 2026- (%)
27
2025- 2013- over over
Cereals 2025-26 2013-
26 14
14
1. Common 2441 1627 50 2369 1310 72 1131
Paddy
(86%)
Grade A^ 2461 - - 2389 1345 72 1116
(83%)2. Hybrid 4023 2682 50 3699 1500 324 2523
Jowar
(168%)
Maldandi 4073 - - 3749 1520 324 2553
^ (168%)
3. Bajra 2900 1858 56 2775 1250 125 1650
(132%)
4. Ragi 5205 3470 50 4886 1500 319 3705
(247%)
5. Maize 2410 1544 56 2400 1310 10 1100
(84%)
Pulses
6. Tur /Arhar 8450 5496 54 8000 4300 450 4150
(97%)
7. Moong 8780 5438 61 8768 4500 12 4280
(95%)
8. Urad 8200 5418 51 7800 4300 400 3900
(91%)
Oilseeds
9. Groundnut 7517 5011 50 7263 4000 254 3517
(88%)
10. Sunflower Seed 8343 5562 50 7721 3700 622 4643
(125%)
11. Soybean (Yellow) 5708 3805 50 5328 2560 380 3148
(123%)
12. Sesamum 10346 6897 50 9846 4500 500 5846
(130%)13. Nigerseed 10052 6701 50 9537 3500 515 6552
(187%)
Commercial
14. (Medium 8267 5511 50 7710 3700 557 4567
Cotton Staple)
(123%)
(Long 8667 - - 8110 4000 557 4667
Staple) ^
(117%)
*Refers to cost which includes all paid out costs such as those incurred on account of hired human
labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred on use of
material inputs like seeds, fertilizers, manures, irrigation charges, depreciation on implements and
farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc.,
miscellaneous expenses and imputed value of family labour.
^ Cost data are not separately compiled for Paddy (Grade A), Jowar (Maldandi) and Cotton (Long
staple)
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
are estimated to be highest in case of Moong (61%) followed by Bajra (56%), Maize (56%) and
Tur/Arhar (54%). For rest of the crops, margin to farmers over their cost of production is estimated
to be at 50%.
In the recent years, 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, procurement of paddy was 8418 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 8746 LMT while during the
period 2004-05 to 2013-14, procurement was 4679 LMT.
During the period 2014-15 to 2025-26, MSP amount paid to Paddy growing famers was Rs. 16.08 Lakh
Crores while during the period 2004-05 to 2013-14, amount paid to farmers was Rs. 4.44 Lakh Crore.
During the period 2014-15 to 2025-26, the MSP amount paid to 14 Kharif crops growing famers was Rs.
18.99 Lakh Crores while during the period 2004-05 to 2013-14, MSP amount paid to farmers was Rs.
4.75 Lakh Crore.
***
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