2 hrs ago
Centre Raises Wheat MSP Above Double Production Cost for 2027-28
The government has decided to pay farmers more for wheat.
The new minimum support price for wheat is ₹2,610 for every quintal.
This is ₹25 more than last year.
Officials say growing a quintal of wheat costs about ₹1,264.
They say the new price is more than twice that cost.
Prices were also raised for some pulses, oilseeds and barley.
The government hopes this will encourage farmers to grow more pulses and oilseeds.
It estimates that buying these crops could cost ₹90,962 crore.
The Centre raised wheat’s MSP by ₹25 to ₹2,610 per quintal for the 2027-28 rabi marketing year.
The government says wheat’s MSP is 106% above its reported production cost of ₹1,264 per quintal.
MSPs also increased for barley, gram, masur, mustard and safflower.
The estimated procurement payout for 324 lakh tonnes is ₹90,962 crore.
The government says the increases will support farmer incomes, food security and crop diversification.
- Who
- The Union government, with the decision approved by the Cabinet Committee on Economic Affairs and announced by Ashwini Vaishnaw.
- What
- Minimum support prices were increased for six rabi crops, including wheat, whose MSP rose to ₹2,610 per quintal.
- Where
- The decision applies to farmers across India.
- When
- The announcement was made on 30 September for the 2027-28 rabi marketing year.
- Why
- The government says the increases provide remunerative prices, maintain at least a 50% margin over production costs and encourage crop diversification.
Key facts
- New wheat MSP
- ₹2,610 per quintal
- Wheat MSP increase
- ₹25 per quintal
- Reported wheat production cost
- ₹1,264 per quintal
- Wheat margin over production cost
- 106%
- Other crops covered
- Barley, gram, masur, mustard and safflower
- Estimated procurement volume
- 324 lakh tonnes
- Estimated procurement cost
- ₹90,962 crore
Quotes
Ashwini Vaishnaw
India’s Information and Broadcasting Minister who announced the MSP decision
“This is a big change. Its impact is directly on farmers’ wellbeing, food security and self-sufficiency. We never thought there could be such good growth in the farm sector”
livemint.com
“The production cost of wheat is ₹1,264 per quintal, but MSP has been kept at more than double, at ₹2,610 per quintal for 2027-28”
livemint.com
Sources
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