Farmers to get 50% to 106% profit on Rabi crops via MSP hike
The Modi government approves a major MSP hike for six Rabi crops for 2027-28, ensuring farmers get up to 106% profit over production costs.
In a massive boost to the agricultural sector, the Central Government has approved a significant increase in the Minimum Support Price (MSP) for all six mandatory Rabi crops for the 2027-28 marketing season. This move is designed to empower millions of farmers by ensuring consistent income growth and economic stability across the country.
Union Minister for Agriculture and Farmers Welfare, Shivraj Singh Chouhan, described the Cabinet's decision as a "historic and revolutionary" step. He emphasized that under Prime Minister Narendra Modi's leadership, the government's core mandate is to ensure that farmers receive a minimum profit margin of at least 50 per cent over their average cost of production (A2+FL).
Unprecedented Profit Margins for Farmers
The newly declared MSP rates for the 2027-28 Rabi season guarantee margins that range from 50 per cent to a staggering 106 per cent over the all-India weighted average cost of production. This direct increase is expected to significantly bolster the net income of small and marginal farmers, who constitute 86 per cent of India's farming community.
Key highlights of the guaranteed profit margins include:
- Wheat: Highest margin at 106 per cent.
- Rapeseed and Mustard: 96 per cent margin.
- Lentil (Masoor): 92 per cent margin.
Detailed Breakdown of New MSP Rates
The Cabinet has fixed revised rates for all six major Rabi crops, with some seeing substantial jumps per quintal. Below are the specifics of the hike and the new prices:
- Safflower (Kusum): Increased by ₹675 per quintal; new MSP is ₹7,215 per quintal.
- Rapeseed & Mustard: Increased by ₹413 per quintal; new MSP is ₹6,613 per quintal.
- Lentil (Masoor): Increased by ₹390 per quintal; new MSP is ₹7,390 per quintal.
- Barley (Jau): Increased by ₹136 per quintal; new MSP is ₹2,286 per quintal.
- Gram (Chana): Increased by ₹83 per quintal; new MSP is ₹5,958 per quintal.
- Wheat: Increased by ₹25 per quintal; new MSP is ₹2,610 per quintal.
A Comparative Look at Agricultural Growth
Minister Chouhan drew a sharp contrast between the current administration's performance and the previous UPA government (2004-05 to 2013-14). He noted that the scale of support for farmers has seen a massive upward trajectory:
- MSP Payouts: While the UPA era saw ₹2.65 lakh crore paid for Rabi procurement, the Modi government has tripled this amount, reaching ₹8.36 lakh crore (2014-15 to 2025-26).
- Procurement Volume: Rabi procurement surged from 2,302 lakh metric tonnes (LMT) under the UPA to a record 3,921 LMT under the Modi government.
- Pulses Revolution: Procurement of pulses saw a massive 35-fold jump, rising from just 6 lakh metric tonnes during the UPA years to a historic 2 crore 20 lakh metric tonnes under the current leadership.
The National Pulses Mission and Self-Reliance
To reduce India's dependency on imports from countries like Canada, the government is aggressively pushing the National Pulses Mission. The recent MSP hikes for lentil and gram are strategic moves to accelerate domestic production.
Furthermore, the Agriculture Ministry has introduced a specialized scheme to utilize 'Rice Fallow Areas'. This initiative encourages farmers to cultivate pulse crops in fields that are typically left uncultivated immediately after the paddy harvest, ensuring that land remains productive and contributes to India's food and nutritional security.