The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved an increase in the Minimum Support Prices (MSP) for 14 Kharif crops for the 2026-27 marketing season, ensuring remunerative prices for farmers ahead of the upcoming sowing season .
The highest absolute increase in MSP over the previous year has been recommended for sunflower seed at ₹622 per quintal, followed by cotton at ₹557 per quintal, nigerseed at ₹515 per quintal, and sesamum at ₹500 per quintal .
Key MSP revisions
The MSP for common paddy has been increased by ₹72 to ₹2,441 per quintal, while Grade A paddy will fetch ₹2,461 per quintal. Cotton (medium staple) MSP has been raised to ₹8,267 per quintal, an increase of ₹557 .
Major increases in MSP (2026-27 over 2025-26) :
- Sunflower Seed – ₹8,343 per quintal (↑₹622)
- Cotton (Medium Staple) – ₹8,267 per quintal (↑₹557)
- Nigerseed – ₹10,052 per quintal (↑₹515)
- Sesamum – ₹10,346 per quintal (↑₹500)
- Tur/Arhar – ₹8,450 per quintal (↑₹450)
- Urad – ₹8,200 per quintal (↑₹400)
50% margin over production cost
The government has fixed MSPs for all notified Kharif crops at least 50 per cent above the all-India weighted average cost of production, in line with the policy announced in the Union Budget 2018-19 .
The expected margin to farmers over their cost of production is estimated to be highest for moong at 61 per cent, followed by bajra and maize at 56 per cent each, and tur/arhar at 54 per cent. For the remaining crops, the margin is estimated at around 50 per cent .
Encouraging crop diversification
Union Minister Ashwini Vaishnaw, briefing reporters after the Cabinet meeting, said the government estimates the total payout to farmers at ₹2.60 lakh crore, with annual procurement projected at 824.41 lakh metric tonnes .
The government has been promoting cultivation of pulses, oilseeds and nutri-cereals (Shree Anna) by offering higher MSP increases for these crops, signalling a push towards crop diversification away from cereals .
Paddy recorded a modest 3 per cent increase as the government grapples with bulging rice stocks in the central pool, while sunflower seed saw an 8 per cent hike to reduce India’s import dependence on edible oils .
The MSP revisions will come into force from the marketing season beginning October 1, 2026. Kharif crops are typically sown during the monsoon months of June-September and harvested in October-November .
Prime Minister Narendra Modi hailed the Cabinet decision, stating that it will ensure crores of farmers receive fair and profitable prices for their produce and bring greater prosperity to their lives .
