The Union Cabinet has approved the Kharif Crops MSP Hike for the 2026-27 marketing season. The decision was taken on 13 May 2026 by the Cabinet Committee on Economic Affairs (CCEA) under the leadership of Prime Minister Narendra Modi. The revised Minimum Support Prices (MSP) for 14 Kharif crops are expected to provide an estimated payout of ₹2.60 lakh crore to farmers across India.

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What is Minimum Support Price?

Minimum Support Price is the fixed price announced by the government for selected crops. It helps farmers get a guaranteed return for their produce even if market prices fall. MSP is announced for 22 crops, including 14 Kharif crops, 6 Rabi crops, and 2 commercial crops.

Kharif crops are mainly grown during the south-west monsoon season and harvested in autumn. Paddy, maize, cotton, bajra, and oilseeds are some major Kharif crops grown in India.

Revised MSP for Major Crops

Under the Kharif Crops MSP Hike, sunflower seed received the highest increase of ₹622 per quintal. Cotton MSP was raised by ₹557 per quintal, while nigerseed and sesamum saw hikes of ₹515 and ₹500 respectively.

The MSP for common paddy was increased by ₹72, taking the new rate to ₹2,441 per quintal. Grade A paddy was fixed at ₹2,461 per quintal for the 2026-27 season.

These changes aim to improve farmer income and encourage higher crop production.

MSP Based on Production Cost

The government stated that MSP continues to follow the formula announced in the Union Budget 2018-19. According to this policy, MSP should be at least 1.5 times the average cost of production.

Among the crops, moong farmers are expected to receive the highest margin of 61% over production cost. Bajra and maize offer margins of 56%, while tur or arhar gives around 54%. Other crops are expected to provide around 50% profit over production costs.

Farmers Raise Concerns Over Paddy MSP

Some farmer groups, including the Bharatiya Kisan Union (Apolitical), expressed disappointment over the paddy MSP increase. They said the nearly 3% rise in paddy prices is not enough because farming expenses such as seeds, fertilizers, fuel, and labour have increased sharply in recent years.

Despite concerns, the government believes the Kharif Crops MSP Hike will strengthen agricultural growth and provide financial support to millions of farmers during the 2026-27 marketing season.