MSP for Rabi crops 2027-28 hiked: Safflower gets ₹675/quintal boost
Synopsis
The Modi cabinet has approved MSP hikes for all Rabi crops for 2027-28, with safflower receiving the biggest jump at ₹675 per quintal. The differentiated structure — sharply higher for oilseeds and pulses, modest for wheat — signals a deliberate push to diversify away from cereal dependence and cut India's edible oil import bill.
Key Takeaways
The CCEA , chaired by PM Narendra Modi , approved MSP hikes for all mandated Rabi crops for Marketing Season 2027-28 on 30 September .
Safflower receives the highest increase at ₹675 per quintal ; rapeseed and mustard follow at ₹413 per quintal .
Lentil (masur) up ₹390/quintal ; barley up ₹136/quintal ; gram up ₹83/quintal ; wheat up ₹25/quintal .
Wheat procurement rose from 2,254 LMT (2004-13) to 3,715 LMT (2014-26), with MSP payouts growing from ₹2.56 lakh crore to ₹7.31 lakh crore .
Total MSP payouts across all six Rabi crops reached ₹8.36 lakh crore between 2014-15 and 2025-26.
MSPs are set at a minimum of 1.5 times the all-India weighted average cost of production, per the Union Budget 2018-19 commitment.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday, 30 September approved a hike in the Minimum Support Price (MSP) for all mandated Rabi crops for Marketing Season 2027-28. The decision is aimed at ensuring remunerative returns for farmers across the country and continues the government's stated policy of pegging MSPs at no less than 1.5 times the all-India weighted average cost of production — a commitment first made in the Union Budget 2018-19.
Crop-wise MSP Increases
The steepest hike has been announced for safflower, which will see its MSP rise by ₹675 per quintal — the largest absolute increase among all Rabi crops this season. Rapeseed and mustard follow with a hike of ₹413 per quintal.
Among the other mandated crops, lentil (masur) receives an increase of ₹390 per quintal, while barley goes up by ₹136 per quintal. Gram sees a rise of ₹83 per quintal, and wheat — the most widely procured Rabi crop — gets a relatively modest hike of ₹25 per quintal, according to an official government statement.
Push Towards Pulses and Oilseeds
The differentiated hike structure reflects a deliberate policy direction. In recent years, the government has actively promoted cultivation of pulses and oilseeds over cereals by offering proportionally higher MSPs for these crops. The outsized increases for safflower, mustard, and masur are consistent with that approach, and are intended to incentivise crop diversification among farming communities.
Notably, India remains a net importer of edible oils, making domestic oilseed production a strategic priority. A higher MSP for mustard and safflower is one lever the government has used to reduce that import dependence.
Procurement and Payout: A Decade in Review
The government cited substantial growth in both procurement volumes and farmer payouts over the past decade as evidence of the MSP framework's expanding reach. Wheat procurement between 2014-15 and 2025-26 stood at 3,715 lakh metric tonnes (LMT), compared with 2,254 LMT during 2004-05 to 2013-14 — a jump of more than 64%.
Across all six mandated Rabi crops, procurement over the same period rose to 3,921 LMT from 2,302 LMT in the preceding decade. On the financial side, MSP payouts to wheat farmers between 2014-15 and 2025-26 totalled ₹7.31 lakh crore, against ₹2.56 lakh crore in the decade before — nearly a threefold increase. For all six Rabi crops combined, total MSP payouts reached ₹8.36 lakh crore, up from ₹2.65 lakh crore previously.
Policy Context and What Comes Next
This MSP revision is consistent with a pattern of annual pre-sowing announcements designed to give farmers price certainty before the Rabi planting season begins. The 1.5x cost-of-production benchmark, while broadly welcomed by farmer groups, has also drawn scrutiny from agricultural economists who argue that the cost methodology used — known as A2+FL — excludes imputed land rent and may understate true input costs.
With Marketing Season 2027-28 procurement set to begin in the months ahead, the revised MSPs will form the floor price at which government agencies purchase eligible Rabi output from farmers. How effectively these prices translate into actual farm income will depend on the scale and reach of procurement operations across states.
Point of View
But the real story is in the spread: a ₹675 hike for safflower versus ₹25 for wheat is not arbitrary — it is a price signal aimed at redirecting cropping patterns away from water-intensive cereals toward oilseeds and pulses. Whether farmers respond depends on how reliably procurement agencies actually buy these non-wheat crops at MSP, which has historically been far patchier than wheat procurement. The government's cost-of-production benchmark also continues to use the A2+FL methodology, which excludes imputed land rent — a contested choice that farm unions argue keeps the effective floor lower than it appears. The decade-on-decade payout comparisons are real, but they reflect volume growth and inflation as much as genuine price improvement for individual growers.
NationPress
30 Sept 2026
Frequently Asked Questions
What is the MSP hike for Rabi crops in Marketing Season 2027-28?
The government has raised MSPs across all mandated Rabi crops for Marketing Season 2027-28. The biggest hike is for safflower at ₹675 per quintal, followed by rapeseed and mustard at ₹413 per quintal, masur at ₹390 per quintal, barley at ₹136 per quintal, gram at ₹83 per quintal, and wheat at ₹25 per quintal.
Why did safflower and mustard get higher MSP hikes than wheat?
The government has been deliberately promoting oilseed and pulse cultivation over cereals to reduce India's dependence on edible oil imports and improve crop diversification. Higher MSPs for safflower and mustard are a price incentive to shift farmers away from water-intensive cereals.
How is the MSP calculated by the government?
MSPs are set at a minimum of 1.5 times the all-India weighted average cost of production, a formula announced in the Union Budget 2018-19. The cost methodology used is A2+FL, which covers paid-out costs and imputed family labour but excludes imputed land rent — a point of ongoing debate among farm groups and economists.
How much has the government paid farmers under MSP over the past decade?
Between 2014-15 and 2025-26, MSP payouts to wheat farmers totalled ₹7.31 lakh crore, compared with ₹2.56 lakh crore in the previous decade. Across all six mandated Rabi crops, total payouts reached ₹8.36 lakh crore over the same period.
When will the revised MSPs come into effect?
The revised MSPs apply to Marketing Season 2027-28, with procurement by government agencies set to begin ahead of the upcoming Rabi harvest. Farmers sowing crops in the current Rabi season will be eligible for these revised floor prices when they sell to government procurement centres.
