The Union Cabinet has approved higher minimum support prices (MSPs) for all mandated rabi crops for 2027-28, with wheat receiving the highest increase of ₹25 per quintal to ₹2,610 per quintal, according to reports from Business Standard. The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved MSP increases for six rabi crops including wheat, barley, gram, masur, rapeseed-mustard and safflower for the Rabi Marketing Season (RMS) 2027-28. Wheat MSP has been increased by ₹25 per quintal to ₹2,610 per quintal for the 2027-28 marketing year, compared with ₹2,585 per quintal in 2026-27. The government stated that these increases are in line with the Union Budget 2018-19 announcement of fixing MSP at a level of at least 1.5 times the all-India weighted average cost of production.
The less than 1% increase in wheat MSP has drawn all-round condemnation from farmer groups, who termed the hike 'inadequate', as reported by Business Standard. Dharmendra Malik, national spokesperson of the Bharatiya Kisan Union (Apolitical), criticized the government for increasing MSP by only ₹25 while farmers face rising input costs. He noted that farmers are having to buy herbicides and pesticides at one-and-a-half times their earlier prices, along with increased diesel costs and sharp price rises in sulphur and other nutrients. Sudhir Panwar, a former member of the UP Planning Commission, called the strategy 'anti-farmer' and suggested the government rejected the 50% profit on input costs under the guise of diversification.
According to Business Standard, the expected margin over the all-India weighted average cost of production varies significantly across crops. Wheat is expected to provide a 106% margin, followed by rapeseed and mustard at 96%, lentil at 92%, gram at 59%, barley at 58%, and safflower at 50%. The MSP for barley has been raised to ₹2,286 per quintal from ₹2,150, while gram will fetch ₹5,958 per quintal, up from ₹5,875. Lentil MSP has been increased to ₹7,390 per quintal from ₹7,000, and rapeseed and mustard MSP has been raised to ₹6,613 per quintal from ₹6,200. Safflower MSP has been fixed at ₹7,215 per quintal against ₹6,540 in the previous marketing season. The absolute highest increase in MSP has been announced for safflower at ₹675 per quintal followed by rapeseed and mustard at ₹413 per quintal, while for lentil, barley, gram, and wheat, there is an increase of ₹390 per quintal, ₹136 per quintal, ₹83 per quintal and ₹25 per quintal respectively.
The government data reveals significant growth in wheat procurement over the past decade. Wheat procurement during 2014-15 to 2025-26 stood at 3,715 LMT (371.5 million tonnes), compared with 2,254 LMT during 2004-05 to 2013-14. The procurement of the six rabi crops stood at 3,921 LMT during 2014-15 to 2025-26, compared with 2,302 LMT during 2004-05 to 2013-14. The MSP amount paid to wheat growers during 2014-15 to 2025-26 stood at ₹7.31 trillion, compared with ₹2.56 trillion during 2004-05 to 2013-14. MSP payments to growers of the six rabi crops stood at ₹8.36 trillion, compared with ₹2.65 trillion over the same periods, demonstrating the substantial increase in government support to farmers. The move will lead to an estimated payout of ₹90,962 crore during the marketing season 2027-28 for procurement of 32.4 million tonnes.
Agriculture Minister Shivraj Singh Chouhan defended the MSP increases, stating that compared with the previous UPA government, the current NDA government has done far better when it comes to MSP. However, the strategy reflects a long-term trend of encouraging farmers to shift towards oilseeds and pulses, which are getting higher MSP hikes than grains, as noted by experts. Satyam Shivam Sundaram from EY LLP explained that the higher MSP increases for oilseeds and pulses, coupled with a relatively modest increase for wheat, reflect a calibrated policy shift towards crop diversification, import substitution, and a broader move from food security-centric approach towards nutrition security. The stronger incentives for crops such as rapeseed-mustard, safflower and masur are well aligned with India's long-term objective of enhancing self-sufficiency in edible oils and pulses, reducing import dependence, and strengthening farm income resilience.
