The Union Cabinet has raised the minimum support price (MSP) of wheat by Rs 25 to Rs 2,610 per quintal for the 2027-28 rabi marketing season. The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, took the decision on September 30, 2026, and Information and Broadcasting Minister Ashwini Vaishnaw announced it to reporters in New Delhi.
MSPs were raised for all six mandated rabi crops - wheat, barley, gram, masur (lentil), rapeseed and mustard, and safflower. These prices apply to crops that farmers will sow this winter and sell from spring 2027.
Rabi MSP 2027-28 - crop-wise list
| Crop | MSP 2026-27 (Rs per quintal) | MSP 2027-28 (Rs per quintal) | Increase (Rs) |
|---|---|---|---|
| Wheat | 2,585 | 2,610 | 25 |
| Barley | 2,150 | 2,286 | 136 |
| Gram | 5,875 | 5,958 | 83 |
| Masur (lentil) | 7,000 | 7,390 | 390 |
| Rapeseed and mustard | 6,200 | 6,613 | 413 |
| Safflower | 6,540 | 7,215 | 675 |
The 2026-27 column is the previous year's MSP, worked out from the new prices and the increases announced.
Margin over cost of production
The government says MSPs are set at least 1.5 times the all-India weighted average cost of production. The expected margins over cost for 2027-28, as reported from the announcement, are:
- Wheat: 106% (cost of production Rs 1,264 per quintal)
- Rapeseed and mustard: 96%
- Masur: 92%
- Gram: 59%
- Barley: 58%
- Safflower: 50%
The minister said the wheat cost of production is Rs 1,264 per quintal, so the new MSP is more than double that.
Key points
- Smallest rise: wheat, up only Rs 25 (about 1%), the main rabi crop bought by government agencies.
- Largest rises: safflower (Rs 675), mustard (Rs 413) and masur (Rs 390), in line with the push to grow more oilseeds and pulses.
- Payout estimate: about Rs 90,962 crore to farmers for an estimated 324 lakh tonnes, as reported from the announcement.
What it means for farmers
- MSP is the price at which government agencies buy notified crops from farmers when they procure. It is not a market price; mandi prices can be higher or lower.
- Wheat sowing in north and central India usually starts in October, so farmers now know the support price before planting.
- Procurement of wheat normally begins around March-April after harvest. Farmers who want to sell at MSP should register with their state's procurement portal or the local procurement centre when registration opens.
The government has also moved other farm services online in recent days, including the new Livestock Insurance Portal for enrolment and claims.
Background
The Centre announces MSPs for 22 mandated crops each year, on the advice of the Commission for Agricultural Costs and Prices. Rabi MSPs are usually declared in September or October, ahead of sowing. For 2026-27, wheat MSP had been raised by Rs 160 to Rs 2,585 a quintal, so this year's increase is much smaller.
What happens next
States and the Food Corporation of India will announce procurement plans and registration dates closer to the 2027 harvest. The new MSPs will apply to rabi crops bought during the 2027-28 marketing season.
