Union Cabinet Approves Higher MSP for 14 Kharif Crops

The Union Cabinet approved higher Minimum Support Prices (MSP) for 14 Kharif crops for the 2026-27 marketing season on 13 May 2026. The decision was taken by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi. The estimated payout to farmers from the revised MSP structure is ₹2.60 lakh crore.

Minimum Support Price and Procurement

Minimum Support Price is a government-fixed price for selected agricultural commodities. It is announced for 22 mandated crops, which include 14 Kharif crops, 6 Rabi crops, and 2 commercial crops. Kharif crops are sown with the onset of the south-west monsoon and harvested in autumn in India.

Revised MSP for Major Kharif Crops

The highest absolute increase in MSP was for sunflower seed, which rose by ₹622 per quintal. Cotton received an increase of ₹557 per quintal, nigerseed by ₹515 per quintal, and sesamum by ₹500 per quintal. Common paddy was raised by ₹72 to ₹2,441 per quintal, while Grade A paddy was fixed at ₹2,461 per quintal for 2026-27.

Cost of Production Formula

The MSP revision follows the Union Budget 2018-19 announcement to fix MSP at least 1.5 times the all-India weighted average cost of production. The government stated that the margin over cost of production is highest for moong at 61%, followed by bajra and maize at 56% each, and tur or arhar at 54%. For the remaining crops, the margin is estimated at 50%.

Important Facts for Exams

• MSP is announced by the Union Government for 22 crops, including cereals, pulses, oilseeds, and commercial crops.
• Common paddy and Grade A paddy are two separate MSP categories used in government procurement.
• Sunflower seed, cotton, nigerseed, and sesamum are important Kharif oilseed and fibre crops.
• The CCEA is a key Cabinet body that approves major economic decisions in India.

Farmer Organisations and Price Concerns

Some farmer organisations, including the Bharatiya Kisan Union (Apolitical), described the 3% increase in paddy MSP as inadequate in the context of rising input costs. The revised MSPs apply to the 2026-27 marketing season.