Announcement of enhanced support prices for farmers for Rabi season 2027-28

The Central Government has approved an increase in the Minimum Support Price (MSP) for all notified Rabi crops for the Rabi marketing season 2027-28. According to a PIB Delhi report, the decision was taken by the government on 30 September 2026. It is expected that approximately ₹90,962 crore will be paid to farmers for a production of 324 lakh metric tonnes during this season.

Minimum Support Price (MSP) is a crucial mechanism to provide price assurance to farmers and to help them make informed decisions regarding agricultural planning and investment. While irregular fluctuations in market prices affect farmers' income, MSP acts as a safety net. When market prices are low, the government provides economic stability to farmers by procuring crops at the notified prices.

The highest increase in the new prices for Rabi crops has been made for Safflower, which saw an increase of ₹675 per quintal. This was followed by an increase of ₹413 in Rapeseed and Mustard, ₹390 in Masur dal, and ₹136 in Barley. Prices for Wheat and Gram have also been increased compared to the previous year.

As per the new prices, the MSP for Wheat has been fixed at ₹2,610 per quintal, providing a margin of 106% against a production cost of ₹1,264 per quintal. For Barley, the price has been fixed at ₹2,286 per quintal, carrying a 58% margin against a production cost of ₹1,447. The price for Gram has been set at ₹5,958 per quintal and for Masur at ₹7,390 per quintal. For Rapeseed and Mustard, the price has been fixed at ₹6,613 per quintal and for Safflower at ₹7,215 per quintal.

The calculation of production cost includes hired human labour, bullocks and machinery, leased land, seeds, fertilisers, manure, and irrigation costs. Additionally, diesel, electricity, depreciation on equipment, interest on working capital, and other expenses are also taken into account. Notably, the value of labour by family members involved in farming is also included in this calculation. This methodology is applied uniformly across all 22 notified crops and all states.

The benefits of using technology and improved crops in farming can be understood through the case of Shri K. Chikkannana, a 72-year-old millet farmer from Bombralli village in Karnataka. For years, he practiced farming using traditional methods, which kept the yield at 9-11 quintals per acre. However, in the 2025 Rabi season, he adopted the improved HR-13 millet variety provided by ICAR-IIMR. He received this seed through the Kusumagiri Farmers Producer Organization (FPO).

Under the guidance of ICAR-IIMR scientists, he adopted methods such as transplantation, balanced nutrient management, and natural farming. As a result, his production increased to 22-23 quintals per acre, which was more than double the previous yield. Along with this, in the 2025-26 season, he received an assurance of procurement by the FPO at an MSP of ₹4,886 per quintal. This increased his income from six acres from approximately ₹2.07 lakh to ₹6.59 lakh.

The Commission for Agricultural Costs and Prices (CACP) recommends the determination of MSP. In these recommendations, views from the respective state governments and central ministries are taken. Prices for Toria and Dashkeld Coconut are determined based on the MSP of Rapeseed-Mustard and Copra. The government announces these prices for 22 notified crops every year.

Digital platforms are used to make the procurement process more transparent. For crops like cereals and grains, procurement is done by the Food Corporation of India (FCI) and state agencies. For pulses, oilseeds, and copra, procurement is carried out through the Price Support Scheme (PSS) under the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA). Agencies such as NAFED and NCCF are operational under this scheme. To promote the cultivation of Tur, Urad, and Masur, procurement is done from pre-registered farmers under the 'Mission for Atmanirbharta in Pulses' until 2030-31.

The PM-AASHA scheme was launched in September 2018. This scheme becomes active when market prices fall below the MSP. The registration, procurement, and payment processes for farmers have been simplified through NAFED's e-Samriddhi and NCCF's e-Samyukti platforms. Farmers can register by providing Aadhaar, land records, and bank details. According to data up to 19 October 2026, more than 43 lakh farmers' procurement, 37.45 lakh metric tonnes of production, and an amount of more than ₹13,000 crore have been paid to farmers through the e-Samyukti platform. Meanwhile, more than 1.37 crore farmers are registered on e-Samriddhi and more than 81 lakh payouts have been made.

To increase transparency in procurement, biometric authentication has been made mandatory from the 2025-26 season. For this, Aadhaar-enabled PoS machines or facial authentication are used, so that only genuine and eligible beneficiaries receive the benefits.

A significant increase in the scale of procurement has been observed in recent years. During 2004-05 to 2013-14, the procurement of six Rabi crops was 2,302 lakh metric tonnes, which increased to 3,921 lakh metric tonnes during 2014-15 to 2025-26. Similarly, MSP payments have also risen from ₹2.65 lakh crore to ₹8.36 lakh crore. Wheat procurement has also increased from 2,254 lakh metric tonnes (2004-14) to 3,715 lakh metric tonnes (2014-26). In the 2026-27 Rabi season, wheat procurement stood at 357.57 lakh metric tonnes, through which more than 34 lakh farmers received a benefit of ₹92,432.51 crore.

The main objective of the government's these measures is to provide a margin of at least 50 per cent to farmers over the production cost. This will increase confidence among farmers to invest in crop diversification and agricultural technology.