MSP for Rabi crops 2027-28 hiked; safflower gets highest ₹675/quintal rise
Synopsis
Key Takeaways
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 six major Rabi crops for the 2027-28 marketing season, drawing expressions of gratitude from farmers across the country. The decision is aimed at ensuring remunerative returns for growers at a time when cultivation costs continue to rise.
Crop-wise MSP Increases
The steepest hike was announced for safflower, with an increase of ₹675 per quintal, followed by rapeseed and mustard at ₹413 per quintal. For lentil (Masur), the increase stands at ₹390 per quintal, while barley received a hike of ₹136 per quintal. Gram saw an increase of ₹83 per quintal, and wheat — the most widely cultivated Rabi crop — received the smallest increase at ₹25 per quintal, according to an official government statement.
What the Government Said
According to the official statement, the MSP revision for Rabi crops for the 2027-28 marketing season is consistent with the Union Budget 2018-19 commitment to fix support prices at a minimum of 1.5 times the all-India weighted average cost of production. The government noted that in recent years it has deliberately promoted the cultivation of pulses and oilseeds — crops other than cereals — by offering comparatively higher MSPs for those categories, as part of a broader push to diversify the agricultural basket.
Farmers React
Farmers who spoke to reporters welcomed the announcement with cautious optimism. Rambilas, a farmer, said: “The government has done a really good thing for the farmers…we are extremely thankful.” Another farmer added: “The government should keep encouraging farmers like this…it is a welcome step as the farmers will also feel respected with this.”
However, farmers also noted that the actual relief will depend on the price at which their produce is procured in practice and the volume of government procurement — factors that have historically varied across states and seasons.
Broader Support Ecosystem
The MSP revision sits alongside a wider set of Central government schemes targeting agricultural welfare. The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) provides direct income support, the Pradhan Mantri Fasal Bima Yojana (PMFBY) covers crop insurance, and several other agriculture-linked initiatives have been extended in recent years. Notably, rising input costs — including fertilisers, labour, and fuel — mean that the headline MSP increase does not always translate into equivalent net income gains for farmers.
What to Watch
The extent to which the revised MSP benefits farmers on the ground will hinge on procurement efficiency and state-level implementation. Agricultural economists have consistently argued that a higher announced MSP is meaningful only when backed by robust physical procurement infrastructure — a gap that persists in several states. The next key milestone will be the onset of the Rabi sowing season and early signals on procurement readiness from state agencies.