Government estimates Rs 90,962 crore in MSP payments to farmers for rabi crops in 2027-28
The Centre estimates farmers will receive ₹90,962 crore for 324 lakh tonnes of produce during Rabi Marketing Season 2027–28 following MSP increases across six crops. Safflower received the largest hike of ₹675 per quintal, while wheat procurement payments reached ₹92,432.51 crore in 2026–27.
The Central government has estimated that farmers will receive Rs 90,962 crore for 324 lakh metric tonnes (MT) of produce during the Rabi Marketing Season (RMS) 2027-28, following an increase in the Minimum Support Prices (MSP) of all mandated Rabi crops, according to a Press Information Bureau (PIB) backgrounder.
The government approved the revised MSPs on September 30, 2026. Safflower received the highest absolute increase of Rs 675 per quintal, taking its MSP to Rs 7,215 per quintal for the 2027-28 season, compared with Rs 6,540 in the previous year, ChiniMandi reported on September 30 quoting a PIB press release.
The MSP for rapeseed and mustard was raised by Rs 413 per quintal to Rs 6,613, while lentil (masur) received an increase of Rs 390 to Rs 7,390 per quintal. Barley MSP was raised by Rs 136 to Rs 2,286 per quintal, gram by Rs 83 to Rs 5,958 and wheat by Rs 25 to Rs 2,610 per quintal.
In terms of estimated returns over the cost of production, wheat has the highest margin at 106%, followed by rapeseed and mustard at 96% and lentil at 92%. The estimated margin for gram is 59%, barley 58% and safflower 50%.
The government said MSP recommendations take into account production costs, domestic and international demand and supply, prevailing prices, inter-crop price parity, terms of trade between agriculture and non-agriculture sectors, and the likely impact of price policy on the wider economy. The cost calculation includes paid-out expenses as well as the imputed value of family labour.
The government estimates that MSP payments for six Rabi crops increased to Rs 8.36 lakh crore during 2014-15 to 2025-26, compared with Rs 2.65 lakh crore during 2004-05 to 2013-14. Procurement of these crops rose to 3,921 lakh metric tonnes (LMT) from 2,302 LMT over the corresponding periods.
Wheat procurement during 2014-15 to 2025-26 stood at 3,715 LMT, against 2,254 LMT in the earlier period. Payments to wheat farmers increased to Rs 7.31 lakh crore from Rs 2.56 lakh crore.
During RMS 2026-27, wheat procurement reached 357.57 LMT, with an MSP value of Rs 92,432.51 crore, benefiting more than 34 lakh farmers, the PBI said in its backgrounder.
A PIB Backgrounder is an explanatory article or information document published by the Press Information Bureau, Government of India, to provide context, historical details and policy explanations on a particular subject.
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Source : ChiniMandi
