Cabinet raises rabi MSPs for 2027-28; oilseeds get bigger boost, wheat up by just Rs 25
The Union Cabinet has approved higher MSPs for rabi crops for 2027-28, prioritizing oilseeds and pulses over wheat to boost domestic production.
In a strategic move to encourage crop diversification, the Union Cabinet on Wednesday approved increased Minimum Support Prices (MSP) for all six mandated rabi crops for the 2027-28 marketing season. While the government provided substantial hikes for oilseeds and lentils, the increase for wheat remained minimal at just Rs 25 per quintal.
The decision was finalized by the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi. Union Minister Ashwini Vaishnaw announced the new rates, highlighting a clear policy shift toward reducing import dependency on specific commodities.
Major Boost for Oilseeds and Pulses
The government is placing a heavy emphasis on increasing domestic production of oilseeds and pulses, areas where India has historically relied on imports. This is reflected in the significant price jumps for several key crops:
- Safflower: Received the highest absolute increase of Rs 675 per quintal, bringing its MSP to Rs 7,215.
- Rapeseed and Mustard: Increased by Rs 413 per quintal, reaching a new price of Rs 6,613.
- Lentil (Masur): Saw a rise of Rs 390 per quintal, taking the price to Rs 7,390.
- Barley: Increased by Rs 136 per quintal to Rs 2,286.
- Gram: Rose by Rs 83 per quintal to Rs 5,958.
By offering these higher margins, the Centre aims to incentivize farmers to move beyond traditional cereal cultivation and adopt a more diversified cropping pattern.
Wheat MSP Sees Sharp Slowdown
In contrast to the massive gains seen in oilseeds, wheat—a staple for food security—received the smallest increment. The MSP for wheat will rise by only Rs 25 per quintal, moving from Rs 2,585 in the previous season to Rs 2,610 for the 2027-28 period.
This represents a significant deceleration compared to the 2026-27 marketing season, when the government had implemented a much larger hike of Rs 160 per quintal for wheat.
Profit Margins and Policy Framework
The government continues to follow the mandate set in the Union Budget 2018-19, which requires support prices to be fixed at least 1.5 times the all-India weighted average cost of production. For the upcoming 2027-28 season, the estimated margins over production costs are as follows:
- Wheat: 106 per cent
- Rapeseed and Mustard: 96 per cent
- Lentil: 92 per cent
- Gram: 59 per cent
- Barley: 58 per cent
- Safflower: 50 per cent
The MSP serves as a guaranteed floor price for these notified crops. While wheat is primarily procured for the central pool, pulses and oilseeds are supported under the Price Support Scheme to protect farmers when market prices dip below the government-mandated levels.
Historical Trends in Procurement
Data released by the government shows a massive scale-up in procurement activities over the last two decades. Between 2014-15 and 2025-26, wheat procurement reached 3,715 lakh metric tonnes, a significant jump from the 2,254 lakh metric tonnes recorded during the 2004-05 to 2013-14 period.
Total procurement across all six rabi crops also saw a substantial rise, climbing from 2,302 lakh metric tonnes in the earlier decade to 3,921 lakh metric tonnes in the more recent period. This growth has been backed by massive financial outlays, with wheat growers receiving Rs 7.31 lakh crore in MSP payments, while total payments across all six rabi crops amounted to Rs 8.36 lakh crore between 2014-15 and 2025-26.