India: Govt raises Rabi MSPs for 2027-28, with larger hikes for oilseeds, pulses

• Safflower gets largest increase of INR 675/quintal, wheat sees minor hike
• Rapeseed, mustard, lentil MSPs raised by around INR 400/quintal

India’s government has approved higher Minimum Support Prices (MSPs) for all mandated Rabi crops for Marketing Season 2027-28 (beginning in April 2027), with increases ranging from INR 25-675/quintal. Oilseeds and pulses received the larger increases, while wheat saw a relatively modest hike. The revised MSP structure is aimed at ensuring remunerative returns for farmers while supporting crop diversification.

Oilseeds and pulses see sharper MSP increases

Safflower received the largest absolute increase among the mandated Rabi crops, with its MSP raised by INR 675/quintal to INR 7,215/quintal from INR 6,540/quintal. Against an estimated production cost of INR 4,810/quintal, the revised MSP provides a 50% margin over cost.

Rapeseed and mustard MSP was increased by INR 413/quintal to INR 6,613/quintal from INR 6,200/quintal. With an estimated production cost of INR 3,367/quintal, the revised MSP represents a 96% margin over cost.

Lentil MSP rose by INR 390/quintal to INR 7,390/quintal from INR 7,000/quintal. Based on an estimated production cost of INR 3,854/quintal, the revised MSP provides a 92% margin over cost.

Gram MSP increased by INR 83/quintal to INR 5,958/quintal from INR 5,875/quintal. Against an estimated production cost of INR 3,751/quintal, the revised MSP represents a 59% margin.

Wheat sees smallest MSP hike

Among cereals, barley MSP increased by INR 136/quintal to INR 2,286/quintal from INR 2,150/quintal. Its estimated production cost is INR 1,447/quintal, resulting in a 58% margin over cost.

Wheat MSP saw the smallest increase among the six mandated Rabi crops, rising by INR 25/quintal to INR 2,610/quintal from INR 2,585/quintal. Against an estimated production cost of INR 1,264/quintal, the revised MSP provides a 106% margin, the highest among the crops covered.

The government said the revised MSPs follow its policy of fixing MSPs at least 1.5 times the All-India weighted average cost of production. The announced margins over production costs range from 50% for safflower to 106% for wheat.

Rabi procurement and MSP payments increase

The government has also highlighted a substantial rise in procurement of Rabi crops over the past decade. Wheat procurement increased to 371.5 million tonnes (mnt) during 2014-15 to 2025-26, compared with 225.4 mnt during 2004-05 to 2013-14.

Procurement of the six mandated Rabi crops increased to 392.1 mnt during 2014-15 to 2025-26 from 230.2 mnt during the corresponding earlier period.

MSP payments to wheat-growing farmers increased to INR 7.31 trillion during 2014-15 to 2025-26 from INR 2.56 trillion during 2004-05 to 2013-14. For the six mandated Rabi crops, MSP payments rose to INR 8.36 trillion from INR 2.65 trillion over the corresponding periods.

Outlook

The higher MSPs strengthen India’s price-support framework for the 2027-28 Rabi season, with the largest absolute increases concentrated in safflower, rapeseed and mustard, and lentil. The differentiated increases indicate continued policy emphasis on improving the relative price support for oilseeds and pulses alongside cereals.

In the near term, the revised MSPs are likely to provide a higher reference price for growers and market participants ahead of the 2027-28 Rabi season. However, the impact on actual farm-gate prices will depend on procurement intensity, mandi arrivals, crop output and prevailing market conditions.