Safflower gets the highest MSP increase of ₹675 per quintal, followed by rapeseed and mustard at ₹413; lentil MSP rises by ₹390

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved higher Minimum Support Prices (MSP) for all mandated Rabi crops for the 2027-28 Marketing Season, with the government aiming to provide remunerative returns to farmers and encourage crop diversification.

The largest absolute increase has been announced for safflower at ₹675 per quintal, followed by rapeseed and mustard at ₹413, lentil (masur) at ₹390, barley at ₹136, gram at ₹83, and wheat at ₹25 per quintal.

Key Highlights

• Safflower MSP: ₹7,215 per quintal, up ₹675
• Rapeseed & mustard MSP: ₹6,613 per quintal, up ₹413
• Lentil (masur) MSP: ₹7,390 per quintal, up ₹390
• Gram MSP: ₹5,958 per quintal, up ₹83
• Barley MSP: ₹2,286 per quintal, up ₹136
• Wheat MSP: ₹2,610 per quintal, up ₹25
• MSP margins over the All-India weighted average cost of production range from 50% for safflower to 106% for wheat
• Government says higher MSPs are intended to support farmer returns and promote diversification towards pulses and oilseeds

MSP for Rabi Crops 2027-28

Crop	MSP 2027-28 (₹/quintal)	Increase (₹/quintal)	Margin over Cost
Wheat	2,610	25	106%
Barley	2,286	136	58%
Gram	5,958	83	59%
Lentil (Masur)	7,390	390	92%
Rapeseed & Mustard	6,613	413	96%
Safflower	7,215	675	50%

The production cost considered by the government includes paid-out expenses such as hired human and machine labour, leased-in land, seeds, fertilisers, manure, irrigation, depreciation, working capital interest, diesel and electricity for pump sets, miscellaneous expenses and the imputed value of family labour.

Higher MSP for Pulses and Oilseeds to Support Crop Diversification

According to the government, the MSP increase follows the Union Budget 2018-19 policy of fixing MSP at at least 1.5 times the All-India weighted average cost of production.

For the 2027-28 Rabi season, the expected margin over production cost is 106% for wheat, 96% for rapeseed and mustard, 92% for lentil, 59% for gram, 58% for barley and 50% for safflower.

The government has also highlighted its efforts in recent years to encourage cultivation of crops beyond cereals, particularly pulses and oilseeds, through higher MSPs.

Rabi Crop Procurement and MSP Payments Rise

The government said wheat procurement during 2014-15 to 2025-26 reached 3,715 lakh tonnes (LMT), compared with 2,254 LMT during 2004-05 to 2013-14.

Procurement of the six mandated Rabi crops during 2014-15 to 2025-26 stood at 3,921 LMT, compared with 2,302 LMT during 2004-05 to 2013-14.

MSP payments to wheat-growing farmers during 2014-15 to 2025-26 increased to ₹7.31 lakh crore, compared with ₹2.56 lakh crore during 2004-05 to 2013-14.

For farmers growing the six Rabi crops, the MSP amount paid during 2014-15 to 2025-26 stood at ₹8.36 lakh crore, compared with ₹2.65 lakh crore during 2004-05 to 2013-14.

Impact on Food, Hospitality and Tourism

The higher MSPs for Rabi crops have implications for the wider food and hospitality supply chain, particularly because wheat, gram, lentils, mustard and other oilseeds are important agricultural inputs for food businesses.

For hotels, restaurants, caterers and institutional kitchens, changes in the underlying agricultural economy can influence procurement and supply-chain conditions for products such as wheat-based foods, pulses, cooking oils and other processed food ingredients. However, the MSP announcement itself does not establish any immediate change in retail or food-service prices.

The stronger policy emphasis on pulses and oilseeds may also support greater diversification in agricultural production, potentially strengthening the domestic food supply base over time. For the hospitality sector, this is relevant to the long-term availability and sourcing of key ingredients used across hotels, restaurants and catering operations.

From a tourism perspective, agricultural production and food supply are part of the broader rural and regional tourism ecosystem, although the PIB release does not specify a direct tourism impact from the MSP revision.

What the MSP Decision Means

The 2027-28 Rabi MSP decision places particularly strong increases on safflower, rapeseed and mustard, and lentil, while wheat receives a more modest increase. The government has linked the revised MSP structure to farmer remuneration, crop diversification and increased procurement support.

For the food and hospitality industry, the decision is significant mainly through its potential influence on the upstream supply of cereals, pulses and oilseeds, which form an important part of India’s food-service value chain.