**Executive Summary**
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, approved the Minimum Support Prices (MSP) for 14 Kharif crops for the 2026-27 marketing season on May 13, 2026. This decision ensures remunerative prices for growers by fixing MSP at least 1.5 times the average cost of production. The highest absolute increases were granted to Sunflower Seed and Cotton to promote crop diversification and farmer income.
**Key Points / Main Content**
**MSP Regulatory Framework**
* **Mandate:** MSP for the 2026-27 season is set at a minimum of 1.5 times the All-India weighted average cost of production, consistent with the 2018-19 Union Budget announcement.
* **Approval:** The Cabinet Committee on Economic Affairs (CCEA) finalized these rates to ensure farmers receive a minimum 50% margin over their production costs.
**Significant Price Increases**
* **Highest Absolute Increases:** Sunflower Seed saw the largest rise at ₹622 per quintal, followed by Cotton (₹557), Nigerseed (₹515), and Sesamum (₹500).
* **Profit Margins:** The highest estimated margins over production costs are for Moong (61%), followed by Bajra (56%), Maize (56%), and Tur/Arhar (54%). All other crops are set at a 50% margin.
**Specific Crop Rates (2026-27)**
* **Cereals:** Paddy (Common) is set at ₹2,441; Paddy (Grade A) at ₹2,461; Jowar (Hybrid) at ₹4,023; Bajra at ₹2,900; Ragi at ₹5,205; and Maize at ₹2,410 per quintal.
* **Pulses:** Tur/Arhar is set at ₹8,450; Moong at ₹8,780; and Urad at ₹8,200 per quintal.
* **Oilseeds:** Groundnut is set at ₹7,517; Sunflower Seed at ₹8,343; Soybean (Yellow) at ₹5,708; Sesamum at ₹10,346; and Nigerseed at ₹10,052 per quintal.
* **Commercial Crops:** Cotton (Medium Staple) is set at ₹8,267 and Cotton (Long Staple) at ₹8,667 per quintal.
**Historical Procurement Trends**
* **Procurement Volume:** Between 2014-15 and 2025-26, the procurement of 14 Kharif crops reached 8,746 LMT, compared to 4,679 LMT during 2004-05 to 2013-14.
* **Financial Outlay:** Total MSP payments to farmers for these crops rose to ₹18.99 Lakh Crore in the 2014-2026 period, up from ₹4.75 Lakh Crore in the preceding ten-year period.
**Impact Analysis**
**Farmers/Growers**
**Impact**
Farmers will receive higher guaranteed prices for 14 Kharif crops, ensuring a profit margin of at least 50% over the cost of production. Those growing pulses, oilseeds, and Nutri-cereals (Shree Anna) will benefit from even higher margins and government promotion.
**Action Required**
Farmers should align their cultivation plans for the 2026-27 season with these new MSP rates, specifically noting the high returns on oilseeds and pulses.
**Government and Procurement Agencies**
**Impact**
The government faces a significantly higher financial commitment, with MSP payments for Kharif crops reaching record levels (₹18.99 Lakh Crore over the last decade). Procurement volumes are expected to remain high based on historical trends.
**Action Required**
Agencies must prepare logistics and financial allocations to handle the procurement of the 14 approved Kharif crops for the 2026-27 marketing season.
**Agricultural Sector/Economy**
**Impact**
The policy drives crop diversification away from traditional cereals toward pulses, oilseeds, and Nutri-cereals/Shree Anna through targeted price incentives.
**Action Required**
The Ministry will continue promoting the cultivation of non-cereal crops to improve soil health and meet nutritional demands.
Key Entities Referenced
Minimum Support Price (MSP): A government mechanism ensuring a guaranteed price for farmers' produce, set at a minimum of 1.5 times the cost of production for the 2026-27 Kharif season.
Cabinet Committee on Economic Affairs (CCEA): The high-level government body, chaired by the Prime Minister, responsible for approving the increase in MSP for 14 Kharif crops.
Union Budget 2018-19: The foundational policy document that established the principle of fixing MSP at least 1.5 times the All-India weighted average cost of production.
Ministry of Agriculture & Farmers Welfare: The primary central ministry responsible for the administration of agricultural policies and overseeing the implementation of the MSP framework.
Ministry of Agriculture & Farmers Welfare
Cabinet approves Minimum Support Prices
(MSP) for Kharif Crops for Marketing Season
2026-27
Posted On: 13 MAY 2026 3:25PM 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 2026- Cost* over cost MSP in 2026-27
No
27 KMS (%)
.
2026-27
2025- 2013- over over
Cereals 2025- 2013-14
26 14
26
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 Staple) 8267 5511 50 7710 3700 557 4567
Cotton
(123%)
(Long Staple) ^ 8667 - - 8110 4000 557 4667
(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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