1. Basic Approval & Purpose
- Passed in: Cabinet Committee on Economic Affairs (CCEA) under the chairmanship of Prime Minister Narendra Modi.
- In the case of Marketing Season: 2026-27 (Rabi Crops).
- Purpose: To guarantee remunerative prices to the farmers and to aid the government policy of remediating MSP at 1.5 the cost of production.
2. Major Highlights of the MSP Increase.
- Greatest Amount of Increase: Safflower (Rs600 per quintal).
- Second Highest Growth: Lentils/masur (Rs300 per quintal).
- Other Material Increases; Rapeseed and Mustard (Rs250), Gram (Rs225), Barley (Rs170) and Wheat (Rs160).
3. New Minimum Support Prices (MSP).
The new MSP, the increase in absolute terms, and the anticipated margin relative to the cost of production, are given in the following table:
Revised MSP for Rabi Crops 2026–27 (Rs quintal)
-
Wheat: Rs2,585 (↑160; Margin: 109%)
-
Barley: Rs2,150 (↑170; Margin: 58%)
-
Gram: Rs5,875 (↑225; Margin: 59%)
-
Lentil (Masur): Rs7,000 (↑300; Margin: 89%)
-
Rapeseed & Mustard: Rs6,200 (↑250; Margin: 93%)
-
Safflower: Rs6,540 (↑600; Margin: 50%)
4. Predicted Results and Policy Congruency.
- Policy: This ruling is in line with the 2018-19 announcement of the Union Budget to repair MSP to at least 1.5 times All-India Weighted Average Cost of Production.
- Benefits:
- Ensure farm income security.
- Promote crop differentiation (particularly to pulses and oilseeds).
- Enhance the system of procuring the Rabi crop.
Month: Current Affairs - October 04, 2025
Category: NATIONAL & STATE NEWS