The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved significant increases in the Minimum Support Prices (MSP) for 14 Kharif crops for the 2026-27 marketing season, aiming to ensure better returns for farmers and encourage cropping diversity.
Under the decision, the MSPs for all 14 crops have been raised ahead of the upcoming sowing season. The highest absolute increases were recommended for sunflower seed, followed by cotton, nigerseed and sesamum. Analysts say the hikes are designed to offer farmers prices that remain at least 50 % above the cost of production, in line with government policy to support rural incomes.
For example, common paddy MSP has been raised by ₹72 to ₹2,441 per quintal, while sunflower seed MSP saw a much larger increase. These revised MSPs are intended to help farmers cover rising input costs and reduce dependency on imports by making domestic production more profitable.
According to official projections, the total procurement under the MSP regime for Kharif crops could involve an estimated support outlay of around ₹2.60 lakh crore, reflecting a broader effort to stabilise farm incomes and protect agricultural value chains.
