DBT Bureau
Pune, 1 Oct 2026
The Indian Cabinet has approved higher minimum support prices for rabi crops for the 2027-28 marketing season, with increases ranging from less than 1% for wheat to 10.3% for safflower. Wheat MSP has been raised to ₹2,610 per quintal from ₹2,585, while mustard increased 6.7% to ₹6,613, masur 5.6% to ₹7,390 and chana 1.4% to ₹5,958. The government estimates a ₹90,962 crore payout for 324 lakh tonnes. Higher increases for pulses and oilseeds are intended to encourage diversification and reduce import dependence. However, rainfall deficits across several states could affect sowing conditions and crop production during the rabi season.
Key Highlights
• Cabinet approves 1-10.3% MSP increases for major rabi crops.
• Wheat MSP rises marginally to ₹2,610 per quintal.
• Mustard MSP increases 6.7% to ₹6,613 per quintal.
• Safflower receives highest MSP hike of 10.3%.
• Government targets 177.72 million tonnes of rabi foodgrain production.
Rabi crop prices are set to receive stronger policy support after the Indian Cabinet approved higher minimum support prices for the 2027-28 marketing season. MSP increases range from less than 1% for wheat to 10.3% for safflower, with relatively larger increases for oilseeds and pulses. Wheat MSP has been raised to ₹2,610 per quintal from ₹2,585 previously, while barley MSP increased to ₹2,286 from ₹2,150.
The revised MSP structure provides a 6.7% increase for mustard to ₹6,613 per quintal, while masur MSP has been raised 5.6% to ₹7,390. Chana received a more modest 1.4% increase to ₹5,958, whereas safflower MSP increased 10.3% to ₹7,215 per quintal. These revisions could improve price incentives for farmers, particularly in oilseeds and pulses.
The government estimates a total payout of ₹90,962 crore for 324 lakh tonnes during the 2027-28 marketing year. The MSP calculations factor in production costs, global and domestic price trends and El Niño-related concerns. Wheat production cost was estimated at ₹1,264 per quintal, against the revised MSP of ₹2,610.
The government has set a rabi foodgrain production target of 177.72 million tonnes, including 121 million tonnes of wheat, 17.20 million tonnes of pulses and 22.30 million tonnes of nutri/coarse cereals. However, rainfall conditions could influence sowing prospects. September rainfall was 8% deficient nationally, while Maharashtra, Karnataka, Telangana, Punjab and Haryana recorded deficits of 52%, 57%, 24%, 64% and 44%, respectively.
The higher MSP increases for oilseeds and pulses are aimed at encouraging crop diversification, strengthening domestic production and reducing import dependence. However, sustained procurement, market access, storage, processing and logistics infrastructure will remain important for converting higher MSPs into actual acreage shifts.
Higher MSPs strengthen incentives for pulses and oilseeds, while rainfall deficits and procurement infrastructure remain key factors influencing rabi acreage, production and farmer realizations.
Source: Kedia Stocks & Commodities Research Pvt. Ltd.
