The Cabinet Committee on Economic Affairs, 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 to ensure better returns for farmers.
According to the government, the highest increase in MSP has been approved for sunflower seed, which saw a hike of Rs 622 per quintal over the previous year. This was followed by cotton with an increase of Rs 557 per quintal, nigerseed with Rs 515 per quintal and sesamum with Rs 500 per quintal.
MSP Fixed At 1.5 Times Production Cost
The government stated that the revised MSPs are in line with the Union Budget 2018-19 announcement of fixing MSP at least 1.5 times the all-India weighted average cost of production.
Among the kharif crops, the estimated margin over the cost of production is highest for moong at 61 per cent. Bajra and maize follow with margins of 56 per cent each, while tur/arhar is estimated to provide a margin of 54 per cent.
For the remaining crops, the estimated farmer margin is around 50 per cent.
Focus On Pulses, Oilseeds And Shree Anna
The Centre said it has been encouraging cultivation of crops beyond traditional cereals by offering comparatively higher MSPs for pulses, oilseeds and nutri-cereals, also known as Shree Anna.
Officials stated that the policy aims to support crop diversification, improve farmer income and reduce dependence on imports of edible oils and pulses.
Procurement And MSP Payments Rise
The Cabinet also highlighted a significant increase in procurement and MSP payments over the past decade.
According to official data, paddy procurement during 2014-15 to 2025-26 stood at 8,418 lakh metric tonnes, compared to 4,590 lakh metric tonnes during 2004-05 to 2013-14.
Similarly, procurement of all 14 kharif crops during 2014-15 to 2025-26 reached 8,746 lakh metric tonnes, against 4,679 lakh metric tonnes in the previous decade.
MSP payments to paddy farmers during 2014-15 to 2025-26 amounted to Rs 16.08 lakh crore, significantly higher than Rs 4.44 lakh crore recorded during 2004-05 to 2013-14.
For all 14 kharif crops combined, MSP payments stood at Rs 18.99 lakh crore during 2014-15 to 2025-26, compared with Rs 4.75 lakh crore in the earlier period.
Keywords:
