New Delhi: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday approved an increase in the minimum support prices (MSP) for all mandated rabi crops for the 2026-27 marketing season, aiming to ensure remunerative returns for farmers.

Safflower received the highest hike, with MSP rising by ₹600 per quintal, followed by lentil (masur) at ₹300 per quintal. Rapeseed and mustard, gram, barley and wheat saw increases of ₹250, ₹225, ₹170 and ₹160 per quintal, respectively.

The revision aligns with the Union Budget 2018-19 commitment to fix MSP at a level of at least 1.5 times the all-India weighted average cost of production. Expected margins over the production cost are 109 per cent for wheat, 93 per cent for rapeseed and mustard, 89 per cent for lentil, 59 per cent for gram, 58 per cent for barley, and 50 per cent for safflower. Officials said the hike will provide farmers with remunerative prices and encourage crop diversification.

The cost of production for these crops includes expenses on hired labour, bullock or machine labour, leased land rent, seeds, fertilisers, manures, irrigation, depreciation on implements and buildings, interest on working capital, fuel and electricity, miscellaneous costs, and the imputed value of family labour.

Announcing MSPs ahead of the sowing season allows farmers to plan cropping strategies to maximise earnings. Meanwhile, India recorded bumper production of rice, wheat, maize, groundnut and soybean in 2024-25. Kharif foodgrain output is estimated at 1,663.91 lakh metric tonnes (LMT), while rabi foodgrain production is estimated at 1,645.27 LMT, according to the Ministry of Agriculture and Farmers’ Welfare.

IANS