Today, Wednesday, the Federal Cabinet approved the minimum support prices for 14 kharif crops for the 2026-2027 marketing season, by paying… $2.60 lakh crores to farmers. The decision was taken based on the recommendations of the Commission on Agricultural Costs and Prices (CACP).
The increase in minimum support for kharif crops is in line with the Union Budget 2018-19 announcement to set the minimum support at not less than 1.5 times the all-India weighted average cost of production, the government said in a press release.
According to the government, the estimated margin on production cost is highest for moong at 61%, followed by bajra and maize at 56% each, and tur/arhar at 54%. As for the rest of the crops, the margin is estimated at 50%.
“A major decision was taken in 2019 to ensure that farmers get a fair return for their labour. The Prime Minister has decided that the minimum cost of production will be fixed at least 50% above the cost of production,” Union Minister Ashwini Vaishnao said. “CACP correctly estimates the cost of the crop by taking into account multiple factors such as inflation.”
As per the Cabinet presentation, the government expects annual procurement of 824.41 lakh metric tons (LMT) under the MSP regime. The presentation also confirmed that minimum price rates are fixed at least 50% above the cost of production, which was the policy adopted in 2019.
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The MSP for common rice is fixed at $2,441 per quintal, while first grade rice will be purchased at $2,461 per quintal. Among the pulses, tur (arhar) MSP is set to $8,450 per quintal $8,780 and Awrad in $8200.
For oilseeds, the minimum support price for groundnuts has been fixed at $7.517 per quintal of sunflower seed $8343, soybeans in $5,708 and sesame in $10,346 per quintal.
The government said it has been encouraging cultivation of pulses, oilseeds and food grains or shree anna in recent years by offering higher MSPs for these crops.
He also highlighted a rise in purchases and MSP payments over the past decade.
Rice purchases during the period 2014-15 to 2025-26 amounted to 8,418 LMT, compared to 4,590 LMT during the period 2004-05 to 2013-14. Procurement of all 14 kharif crops increased from 4,679 LMT in 2004-05 to 2013-14 to 8,746 LMT during 2014-15 to 2025-26.
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According to the government, MSP payments to rice farmers have increased from $4.44 lakh crore during the period from 2004-05 to 2013-14 to $16.08 crore during the period from 2014-15 to 2025-26.
Total MSP payments to farmers growing 14 kharif crops have increased from $4.75 lakh crore to $18.99 crore during the same period.
