Rabi crop procurement hits 3,921 LMT; MSP payouts surge to ₹8.36 lakh crore
Synopsis
Key Takeaways
The procurement of six Rabi crops has risen sharply from 2,302 lakh metric tonnes (LMT) during the decade 2004-05 to 2013-14 to 3,921 LMT during 2014-15 to 2025-26, as minimum support price (MSP) payments to farmers climbed from ₹2.65 lakh crore to ₹8.36 lakh crore, according to an official factsheet released on Thursday, 29 October 2026. The data underscores a significant expansion in both the scale of government procurement and the financial outreach to the farming community over the past decade.
MSP Hikes for Rabi Marketing Season 2027-28
The government approved enhanced MSPs for all mandated Rabi crops for the Rabi Marketing Season (RMS) 2027-28 on 30 September 2026. An estimated ₹90,962 crore is expected to be paid to farmers for 324 lakh metric tonnes (MT) of produce during this season.
The highest absolute increase in MSP has been announced for safflower at ₹675 per quintal, followed by rapeseed and mustard at ₹413 per quintal, lentil (masur) at ₹390 per quintal, and barley at ₹136 per quintal. MSPs for wheat and gram have also increased compared with the previous year.
Returns Over Cost of Production
In terms of margin over the cost of production, wheat records the highest estimated return at 106 per cent, followed by rapeseed and mustard at 96 per cent, lentil (masur) at 92 per cent, and gram at 59 per cent. The enhanced MSPs are intended to ensure remunerative prices while incentivising crop diversification, according to the factsheet.
The government announces MSPs annually for 22 mandated agricultural crops, based on recommendations from the Commission for Agricultural Costs and Prices (CACP).
Digital Platforms Transforming Procurement
The procurement process has been significantly strengthened through digital infrastructure. As of 19 October 2026, the e-Samyukti platform has facilitated procurement involving more than 43 lakh farmers, with over 37.45 lakh metric tonnes procured and more than ₹13,000 crore credited directly to farmers' accounts.
Separately, the e-Samriddhi platform recorded more than 1.37 crore registered farmers, over 2.25 crore units of produce procured, and more than 81 lakh payouts to farmers. The factsheet noted that these digital tools are enhancing accessibility and transparency in procurement and payment processes.
What This Means for Indian Agriculture
This comes amid sustained pressure on the Centre to demonstrate tangible income support for farmers — a politically sensitive issue that has driven multiple agitations in recent years. The surge in both procurement volumes and MSP payouts reflects a deliberate policy of expanding the government's direct market intervention. Notably, the shift toward digital platforms like e-Samyukti and e-Samriddhi also introduces greater traceability, potentially reducing leakages that have historically plagued agricultural procurement. The next critical test will be the actual disbursal performance during RMS 2027-28, with ₹90,962 crore in projected payments to watch closely.