NEW DELHI: Centre on Wednesday approved hike in minimum support prices (MSP) of 14 Kharif crops for the marketing season 2026-27, with the most-popular Kharif crop paddy getting an increase of Rs 72 per quintal (3%) to reach Rs 2,441 per quintal.The highest absolute increase in MSP over the previous year has, however, been recommended for sunflower seed (Rs 622 per quintal), followed by cotton (Rs 557 per quintal), niger seed (Rs 515 per quintal) and sesamum (Rs 500 per quintal), giving a signal to farmers to primarily opt for oilseeds over other crops to reduce India’s import bills of edible oils.The expected margin to farmers over their cost of production are, on the other hand, estimated to be highest in case of moong (61%), followed by bajra (56%), maize (56%) and tur/arhar (54%) in continuation with govt’s focus on diversification of crops to bring pulses and millets at the forefront of farmers’ choice. In percentage, as well as absolute terms, the hike in MSP of maize and moong figured at the bottom of the list.

The hike, approved by the cabinet, will come into force from the marketing season, beginning Oct 1. Kharif crops are sown during monsoon season (June-Sept) and are harvested in Oct-Nov.Govt estimates the total payout to farmers at Rs 2.6 lakh crore, factoring in the total projected annual procurement at 824.4 lakh tonne.Sharing details of the cabinet’s decision, I&B minister Ashwini Vaishnaw said the new MSPs have been fixed to ensure remunerative prices for farmers and are at least 50% above the cost of production across all 14 crops.

The all-India weighted average cost of production includes all paid out costs such as those incurred on account of hired labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilizers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc., miscellaneous expenses and imputed value of family labour.