Rabi MSP 2027-28: Enhanced Price Support for Farmers
On 30 September 2026, the Government raised Minimum Support Prices for all six Rabi crops applicable to the 2027-28 marketing season. Farmers are expected to receive approximately ₹90,962 crore for 324 lakh metric tonnes of produce. Safflower saw the steepest absolute price hike while wheat offers the highest return over production cost.
Background
- The Government announces MSP annually for 22 agricultural crops, with CACP providing recommendations after consulting State Governments and Central Ministries
- CACP examines production costs, domestic and global price trends, demand-supply dynamics, and ensures farmers receive at least 50 percent above their cultivation expenses
- Rabi crop procurement expanded from 2,302 lakh metric tonnes between 2004-05 and 2013-14 to 3,921 lakh metric tonnes between 2014-15 and 2025-26
- Payments to farmers grew from ₹2.65 lakh crore to ₹8.36 lakh crore across these periods
- NAFED and NCCF procure pulses, oilseeds and copra under PM-AASHA's Price Support Scheme when market rates drop below MSP
Why it matters for the exam
- MSP illustrates the tension between supporting farmer incomes and managing fiscal commitments, as guaranteed procurement creates significant government expenditure obligations
- Varying margins across crops—wheat at 106% versus safflower at 50%—signal policy efforts to encourage farmers to shift from water-intensive cereals toward oilseeds and pulses
- The Mission for Aatmanirbharta in Pulses running till 2030-31 links pricing policy to reducing import dependence and strengthening food security
- Digital platforms and procurement through Farmer Producer Organizations aim to remove middlemen and improve transparency in benefit delivery
For Prelims revision
- Government announces MSP for 22 agricultural crops each year
- CACP ensures MSP provides minimum 50% return above production cost
- PM-AASHA commenced in September 2018
- Wheat MSP for RMS 2027-28 stands at ₹2,610 per quintal offering 106% margin over cost
Mains practice
Analyse how the Minimum Support Price mechanism attempts to balance remunerative returns for farmers with the goal of encouraging crop diversification. What institutional measures can improve MSP implementation effectiveness? (Practice question by Shishya, 250 words)
Syllabus line (General Studies-III): “Major crops-cropping patterns in various parts of the country, - different types of irrigation and irrigation systems storage, transport and marketing of agricultural produce and issues and related constraints; e-technology in the aid of farmers.” — UPSC CSE 2026 notice, read 27 Oct 2026.
Source: PIB — Minimum Support Price for Rabi: Marketing Season 2027-28 (PIB Backgrounder, 2026-10-29) (read 30 Oct 2026)
Made by Shishya (AI-assisted), checked against the PIB release. No newspaper text is used.