Blitz Bureau
NEW DELHI: With the increase in minimum support prices (MSP) for various crops announced for the rabi marketing season of 2026-27, farmers are expected to receive Rs 84,263 crore as the Government’s procurement is estimated at 297 lakh metric, according to an official statement issued on October 10. MSP payouts to farmers for the Government’s purchase of foodgrains have more than tripled from Rs 1.06 lakh crore in 2014-15 to Rs 3.33 lakh crore in July 2024 – June 2025, while procurement has increased from 761.40 lakh metric tonnes to 1,175 lakh metric tonnes over the same period, benefiting 1.84 crore farmers, the official statement said.
Minimum Support Price (MSP) is a crucial mechanism through which the government supports farmers by purchasing their crops at a pre-determined price. For example, a wheat grower can be assured of Rs 2,585 per quintal for his crop (MSP for 2026-27), even if open-market prices dip. Similarly, a paddy farmer can sell to government agencies at Rs 2,369/quintal (MSP for 2025-26) for common paddy. This assured price encourages farmers to invest in quality seeds and technology without fear of distress sales.
Since 2018-19, the Government has been increasing MSPs for all mandated crops in line with the Union Budget 2018-19 announcement for setting up MSP at least 1.5 times the cost of production. This ensures a minimum return of 50 per cent over the all-India weighted average cost of production for all crops. The Cabinet has approved the increase in the Minimum Support Prices (MSP) for all mandated Rabi Crops for Marketing Season 2026-27 on October 1, 2025. Further, the government has increased the MSP of mandated crops for the Kharif Marketing Season 2025-26 to ensure remunerative prices to the growers for their produce.
