The Union Cabinet approved a 6% increase in the Minimum Support Price for major kharif crops for the 2026-27 season, with paddy MSP raised by Rs 143 to Rs 2,526 per quintal and cotton MSP increased by Rs 501 to Rs 8,602 per quintal for medium staple variety. The decision will benefit approximately 12 crore farm households across India.
Maize MSP was hiked by 6.4% to Rs 2,318 per quintal while groundnut saw a 5.8% increase to Rs 7,261 per quintal. Agriculture Minister Shivraj Singh Chouhan said the hike was in line with the government's commitment to ensure at least 50% returns above cost of production for all notified crops. The cost of production for paddy is estimated at Rs 1,684 per quintal, giving farmers a 50% margin.
The announcement comes ahead of the kharif sowing season which begins in June with the onset of the southwest monsoon. Weather forecasters have predicted a normal monsoon for 2026, which would be critical for achieving the government's foodgrain production target of 340 million tonnes for FY27. Farm sector analysts expect the MSP hike to boost rural income and consumption.
