Kharif MSP 2026-27 Hike: Cabinet Approves Higher Prices for 14 Crops, Paddy at ₹2,441

News brief. The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on 13 May 2026 approved higher Minimum Support Prices (MSP) for 14 Kharif crops for marketing season 2026-27. Common paddy MSP rises to ₹2,441/quintal (up ₹72), Grade A paddy to ₹2,461. The biggest absolute hike goes to sunflower seed (+₹622), followed by cotton (+₹557), nigerseed (+₹515) and sesamum (+₹500). The government says expected margin over cost of production stays at at least 50% for every notified Kharif crop — keeping the Budget 2018-19 commitment of MSP = 1.5× weighted average cost intact.

The CCEA decision sets the floor price at which government agencies — primarily FCI, NAFED and CCI — will procure 14 Kharif crops when the new marketing season opens after the June-October 2026 Kharif harvest. Sowing for Kharif 2026 begins with the onset of the southwest monsoon in June, and MSP announcement before sowing has been the government’s standard practice since 2018 so that farmers can plan their cropping pattern.

🎯 Why this MSP cycle matters

• Pulses and oilseeds get the biggest push — three of the top four absolute hikes (sunflower, nigerseed, sesamum) are in oilseeds, where India still imports nearly 60% of edible oil demand.
• Cotton sees its largest jump in years (+₹557) after two seasons of subdued procurement and weak global prices.
• Paddy increase is modest (+₹72 for common, ~3%) — the smallest among the 14 crops in percentage terms, signalling the government’s quiet push to discourage water-intensive paddy and shift area to pulses and millets.
• Margins over cost stay above 50% across the board, with the highest expected returns for moong (61%), bajra (56%), maize (56%) and tur/arhar (54%).

📋 Crop-wise MSP Table — Kharif 2026-27

💡 How MSP procurement works for farmers

If you grow any of the 14 notified Kharif crops, you can sell to a government procurement agency at the MSP after harvest:

1. Register at your nearest APMC mandi or on the eNAM portal before the procurement window opens (typically October–December for most Kharif crops).
2. Carry land records, Aadhaar, and bank passbook for verification.
3. Quality grading at mandi — produce must meet Fair Average Quality (FAQ) norms; below-FAQ produce may be procured with a price cut or rejected.
4. Payment is credited via DBT to the farmer’s bank account within 48–72 hours of weighment, under the Direct Benefit Transfer for Agriculture stack.

🔔 Reminder: MSP is a floor price, not a guaranteed buyer. If market prices are above MSP (as is currently the case for moong and urad in many states), private traders will buy at higher rates. MSP procurement kicks in mostly when mandi prices fall below the announced MSP.

📊 Decade in numbers — what MSP procurement delivered (2014-15 to 2025-26)

The 4× jump in MSP payouts reflects both volume growth and the structural shift to higher MSPs since the 2018-19 Budget commitment of pricing all notified crops at 1.5× the all-India weighted average cost of production (A2+FL).

❓ Frequently Asked Questions

🔗 Official References