MSP Hike
Cabinet approves 0.1-8.8% hike in MSP of 14 key kharif crops for 2026-27
This story was originally published at 18:36 IST on 13 May 2026
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--Cabinet OKs INR 2.6 tln for kharif MSP for 2026-27
--Govt: To procure 82.4 mln tn kharif crops in 2026-27
--Govt hikes MSP for common paddy to INR 2,441/100 kg vs INR 2,369
--Govt hikes MSP for grade-A-paddy to INR 2,461/100 kg vs INR 2,389
--Govt hikes MSP for jowar hybrid to INR 4,023/100 kg vs INR 3,699
--Govt hikes MSP for bajra to INR 2,900/100 kg from INR 2,775
--Govt hikes MSP for ragi to INR 5,205/100 kg from INR 4,886
--Govt hikes MSP for maize to INR 2,410/100 kg from INR 2,400
--Govt hikes MSP for tur to INR 8,450/100 kg from INR 8,000
--Govt hikes MSP for moong to INR 8,780/100 kg from INR 8,768
--Govt hikes MSP for urad to INR 8,200/100 kg from INR 7,800
--Govt hikes MSP for medium staple cotton to INR 8,267/100 kg vs INR 7,710
--Govt hikes MSP for long staple cotton to INR 8,667/100 kg vs INR 8,110
--Govt hikes MSP for groundnut to INR 7,517/100 kg vs INR 7,263
--Govt hikes MSP for soybean to INR 5,708/100 kg from INR 5,328
--Govt hikes MSP for sunflower seed to INR 8,343/100 kg vs INR 7,721
--Govt hikes MSP for sesamum to INR 10,346/100 kg from INR 9,846
--Govt hikes nigerseed MSP to INR 10,052/100 kg vs INR 9,537
NEW DELHI – The Cabinet Committee on Economic Affairs Wednesday approved a hike in the minimum support price of 14 key crops by 0.1-8.8% for the kharif marketing season 2026-27 (Oct-Sept). The total outgo on the minimum support price is pegged at INR 2.60 trillion, with the government expected to procure 82.44 million tonnes of kharif crops from farmers, Information and Broadcasting Minister Ashwini Vaishnaw said.
The government has announced a conservative hike for most kharif crops this time, as minimum support prices were hiked by 1.0-13.9% last year.
For the 2026-27 season, the highest absolute increase in minimum support price was announced for sunflower seed, raised by INR 622 per 100 kilograms, followed by cotton, which was raised by INR 557 per 100 kg, nigerseed by INR 515 per 100 kg, and sesamum seed by INR 500 per 100 kg. The lowest hikes were announced for maize and moong, by INR 10 per 100 kg and INR 12 per 100 kg, respectively.
Meanwhile, the minimum support price for the largest kharif crop, paddy, was increased by INR 72 each for common and grade A varieties to INR 2,441 per 100 kilograms and INR 2,461 per 100 kg, respectively.
The minimum support price for tur, the largest kharif pulse in terms of acreage and output, has been increased 5.6% to INR 8,450 per 100 kg. The minimum support price for other pulses, such as urad and moong, was raised 5.1% and 0.1% to INR 8,200 and INR 8,780, respectively.
With the MSP hike, farmers cultivating moong are expected to have the highest margin, at 61%, followed by bajra and maize at 56%, and tur at 54%. For the remaining kharif crops, farmers' margin over their cost of production is estimated at 50%, the agriculture ministry said in a release.
The minimum support price of maize has been hiked by 0.4% to INR 2,410 per 100 kg. This was a stark decline from the 7.9% hike announced for the crop last kharif season.
The minimum support price for other coarse cereals, such as bajra and ragi, has been raised by 4.5% and 6.5% to INR 2,900 and INR 5,205, respectively. For jowar varieties, the support price has been raised by over 8.6% to INR 4,023 and INR 4,073 per 100 kg.
The government has been promoting the cultivation of crops other than cereals, such as pulses, oilseeds, and nutri-cereals, by offering a higher minimum support price for these crops.
Among oilseeds, the minimum support price of groundnut has been raised by 3.5% to INR 7,517 per 100 kg, and that of soybean by 7.1% to INR 5,708 per 100 kg.
Among commercial crops, the minimum support price of medium-staple cotton has been increased 7.2% to INR 8,267 per 100 kg, and that of long-staple cotton by 6.8% to INR 8,667 per 100 kg. More
The government procures crops from farmers at minimum support prices to maintain buffer stocks, distribute food grains to 800 million people through welfare schemes, and to cool prices by offloading stocks in the open market. Higher minimum support prices prompt farmers to add more area under these key kharif crops.
The following table details the minimum support prices of key kharif crops for 2026-27, in INR per 100 kg, compared with last year's prices, the year-on-year change in absolute and percentage terms, and the margin over cost of cultivation in percentage:
| Commodity | Variety | MSP(2026-27) | MSP(2025-26) | Change | Margin over cost* (in %) | |
|---|---|---|---|---|---|---|
| Absolute |
Change (in %) |
|||||
| Paddy | Common | 2,441 | 2,369 | 72 | 3.0 | 50 |
| Grade A | 2,461 | 2,389 | 72 | 3.0 | - | |
| Jowar | Hybrid | 4,023 | 3,699 | 324 | 8.7 | 50 |
| Maldandi | 4,073 | 3,749 | 324 | 8.6 | - | |
| Bajra | 2,900 | 2,775 | 125 | 4.5 | 56 | |
| Ragi | 5,205 | 4,886 | 319 | 6.5 | 50 | |
| Maize | 2,410 | 2,400 | 10 | 0.4 | 56 | |
| Arhar(Tur) | 8,450 | 8,000 | 450 | 5.6 | 54 | |
| Moong | 8,780 | 8,768 | 12 | 0.1 | 61 | |
| Urad | 8,200 | 7,800 | 400 | 5.1 | 51 | |
| Groundnut | 7,517 | 7,263 | 254 | 3.5 | 50 | |
| Sunflower Seed | 8,343 | 7,721 | 622 | 8.1 | 50 | |
| Soybean | Yellow | 5,708 | 5,328 | 380 | 7.1 | 50 |
| Sesamum | 10,346 | 9,846 | 500 | 5.1 | 50 | |
| Nigerseed | 10,052 | 9,537 | 515 | 5.4 | 50 | |
| Cotton | Medium Staple | 8,267 | 7,710 | 557 | 7.2 | 50 |
| Long Staple | 8,667 | 8,110 | 557 | 6.8 | - | |
*Includes all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, land lease, input costs such as seeds, fertilisers, manures, irrigation charges, depreciation on implements, and farm miscellaneous expenses, and imputed value of family labour.
End
Reported by Afra Abubacker
Edited by Tanima Banerjee
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