India Cabinet approves MSP hikes for six Rabi crops

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved an increase in the Minimum Support Prices (MSP) for six mandated Rabi crops for the 2027-28 marketing season. The decision aims to ensure remunerative prices for farmers and encourage crop diversification, specifically toward pulses and oilseeds.

Safflower received the highest increase of Rs 675 per quintal, bringing its MSP to Rs 7,215. Other significant hikes include rapeseed and mustard (Rs 413), lentil (Rs 390), barley (Rs 136), and gram (Rs 83). Wheat received the smallest increase of Rs 25 per quintal, raising its price to Rs 2,610.

The revised rates align with the government's commitment to set MSP at a minimum of 1.5 times the all-India weighted average cost of production. The government noted that these increases provide profit margins ranging from 50% to 106% over production costs. This policy shift is part of a broader effort to reduce reliance on imports by promoting domestic production of oilseeds and pulses.