Higher Rabi Crop Support
Cabinet Raises Minimum Support Prices for Rabi Crops to Encourage Diversification
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Key Points
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Government data cited in the coverage says procurement of major rabi crops totalled 3,921 lakh tonnes from 2014–15 to 2025–26, compared with 2,302 lakh tonnes in the preceding decade, 2004–05 to 2013–14; MSP payouts to rabi farmers during the later period were ₹8.36 lakh crore.
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The government said the revised prices meet the Union Budget 2018–19 commitment to set MSP at no less than 1.5 times the all-India weighted average cost of production.
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Ahead of the rabi season, Agriculture Minister Shivraj Singh Chouhan urged states to assess water availability and soil moisture before finalising crop plans, and to prioritise less water-intensive pulses and oilseeds in water-stressed areas.
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The ₹25 increase in wheat MSP was reported as the smallest annual rise since 2010–11.
India's cabinet approved higher minimum support prices for six rabi crops for the 2027–28 season, with safflower jumping ₹675 per quintal and wheat rising just ₹25 to ₹2,610. Manorama Yearbook reported that this marks wheat's smallest annual increase since 2010–11. The government committed ₹90,962 crore to procure 324 lakh tonnes, aiming to guarantee farmers at least 50% profit over production costs while encouraging a shift toward pulses and oilseeds.
Prime Minister Narendra Modi chaired the Cabinet Committee on Economic Affairs meeting on September 30. Agriculture Minister Shivraj Singh Chouhan said the decision reflects the government's commitment that "farmers should get a profit of at least 50% or more over their average cost of production." Dainik Jagran noted farmers in water-stressed regions welcomed the increases but warned that low rainfall has already reduced chickpea cultivation.
Safflower and Oilseeds Get the Biggest Boost
Safflower received the largest price hike, rising ₹675 per quintal — a 10.32% jump — to reach ₹7,215. Rapeseed and mustard climbed ₹413 to ₹6,613 per quintal. Trade Brains highlighted that these increases far outpaced wheat's minimal rise, reflecting government policy to steer farmers away from water-hungry crops. The new prices guarantee oilseed growers margins of 50% to 96% above their production costs.
Lentil (masur) rose ₹390 to ₹7,390, and gram jumped ₹83 to ₹5,958 per quintal. Barley was raised ₹136 to ₹2,286. Agriculture Minister Chouhan urged states to prioritize these less water-intensive pulses and oilseeds in drought-prone areas. Global Agriculture reported the cabinet's goal of pushing crop diversification while reducing strain on groundwater and reservoir supplies.
Wheat Price Stalled as Grain Stocks Overflow
Wheat's ₹25 increase to ₹2,610 per quintal represents the smallest annual rise in 17 years. Dainik Jagran reported this reflects bloated central grain reserves and surplus state stockpiles. Despite the minimal hike, wheat growers retain a 106% profit margin — the highest of all six crops — because baseline production costs remain low at ₹1,264 per quintal.
Chouhan acknowledged the criticism, stating: "Wheat stocks are overflowing... Justice will be done to the farmers." He added that policy focus has shifted to pulses, where yields remain far below potential. The deliberate restraint on wheat prices aims to prevent further overproduction while encouraging farmers to diversify into higher-value, water-efficient crops that India imports.
Record Procurement and Historical Budget Surge
The cabinet approved ₹90,962 crore to purchase rabi crops during 2027–28 — a historic commitment to rural support. Manorama Yearbook noted that combined rabi procurement reached 3,921 lakh tonnes between 2014–15 and 2025–26, nearly 70% higher than the 2,302 lakh tonnes procured in the preceding decade (2004–15). MSP payouts to rabi farmers totaled ₹8.36 lakh crore in the recent period versus ₹2.65 lakh crore previously.
These figures underscore a dramatic expansion in government support. Revoi reported the price hikes align with the Union Budget 2018–19 mandate to set MSPs at no less than 1.5 times average production costs. The policy balances farmer income protection with fiscal discipline — ensuring growers earn fair returns while constraining unsustainable grain surpluses and costly storage operations.
Farmers Cautiously Optimistic Amid Drought Risks
Farmers in Rajasthan and other drought-prone regions expressed guarded welcome for the price increases. They said higher MSP floors could help offset surging fertilizer and fuel costs. However, many reported that severe rainfall deficits have already depressed sowing — particularly for chickpea, where low moisture discouraged cultivation despite modest price gains of just 1.41%.
Agricultural experts note that price support alone cannot overcome structural vulnerabilities. Farmers need concurrent investments in irrigation, soil moisture monitoring, and crop insurance to fully capitalize on higher MSPs. The government's push toward oilseeds and pulses makes sense economically, but success hinges on water availability and farmer confidence that raised prices will persist beyond 2027–28.
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