Minimum Support Price for Rabi: Marketing Season 2027-28

Key Highlights:

• The Government approved increased Minimum Support Prices (MSPs) for all mandated Rabi crops for the Rabi Marketing Season (RMS) 2027-28 on 30 September 2026.
• An estimated ₹90,962 crore is expected to be paid to farmers for 324 lakh metric tonnes (MT) of produce during RMS 2027-28.
• Safflower received the highest absolute MSP increase at ₹675 per quintal, followed by rapeseed & mustard (₹413) and lentil (₹390).
• Wheat records the highest estimated margin over cost of production at 106%, followed by rapeseed and mustard (96%) and lentil (92%).
• Digital platforms like e-Samriddhi and e-Samyukti facilitate transparent procurement, farmer registration, and direct bank transfers of MSP payments.

Detailed Insights:

• MSP serves as a crucial policy instrument providing price assurance, mitigating market fluctuations, and encouraging agricultural investment.
• MSPs are recommended by the Commission for Agricultural Costs and Prices (CACP), considering factors like cost of production, demand-supply, and a minimum 50% margin over cost.
• The cost of production for MSP calculation includes paid-out expenses, depreciation, interest on working capital, and imputed value of family labor.
• Procurement for cereals is handled by the Food Corporation of India (FCI) and State agencies, while pulses, oilseeds, and copra are procured under the Price Support Scheme (PSS) of PM-AASHA.
• NAFED and NCCF are key agencies for procurement under PSS, activated when market prices fall below MSP.
• Biometric authentication of farmers became mandatory under PSS from the 2025–26 season to ensure benefits reach genuine beneficiaries.
• Procurement volumes and MSP payments have significantly increased from 2014-15 to 2025-26 compared to the previous decade, reflecting expanded government support.

Key Concepts Involved:

• Minimum Support Price (MSP): A guaranteed price set by the government for agricultural produce to protect farmers against sharp falls in price.
• Commission for Agricultural Costs and Prices (CACP): An advisory body that recommends MSP for various crops to the government.
• Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA): An umbrella scheme to ensure remunerative prices to farmers for their produce.
• Price Support Scheme (PSS): A component of PM-AASHA where government agencies procure crops when market prices fall below MSP.