Cabinet clears massive ₹2.6 lakh crore MSP package for kharif crops ahead of sowing season

Rashmi Pandey — Wed, 13 May 2026 09:58:46 +0000

The Union Cabinet on Wednesday approved an estimated outlay of nearly ₹2.6 lakh crore for Minimum Support Price (MSP) operations for the 2026–27 kharif marketing season, in a major policy decision aimed at supporting farmers ahead of the upcoming sowing cycle.

According to reports emerging from the Cabinet meeting chaired by Prime Minister Narendra Modi, the decision covers MSP procurement operations for key kharif crops including paddy, maize, pulses, oilseeds and millets. The move is expected to provide price assurance to millions of farmers across the country amid rising input costs and fluctuating market conditions.

Government officials said the MSP mechanism is intended to ensure remunerative prices for farmers and protect them from distress sales during periods of excess production or weak market demand. The latest allocation is among the largest financial commitments toward MSP procurement operations in recent years.

Reports indicate that the Cabinet also discussed procurement strategies for 14 major kharif crops for the 2026–27 season. These include paddy, tur (arhar), urad, moong, maize, bajra, ragi, groundnut, sunflower seed, soybean and cotton.

The approval comes as the Centre continues to push cultivation of pulses, oilseeds and “Shree Anna” or nutritious coarse cereals to diversify cropping patterns and reduce dependence on imports. In recent years, the government has repeatedly increased MSP support for these crops to encourage farmers to shift beyond traditional rice and wheat cultivation.

Under the MSP system, government agencies procure crops from farmers at pre-announced rates when market prices fall below the support price. Officials maintain that the policy helps stabilise farm incomes while strengthening national food security reserves.

Last year, the Centre had approved revised MSPs for 14 kharif crops for the 2025–26 marketing season, with significant increases announced for nigerseed, ragi, cotton and sesamum. The government had also highlighted that MSP rates were maintained at least 1.5 times the all-India weighted average cost of production, in line with earlier budget commitments.

The latest decision assumes significance as kharif sowing preparations begin across several states before the monsoon season. Agricultural economists believe MSP announcements often influence farmers’ crop choices and acreage allocation ahead of sowing.

The Cabinet’s approval is expected to provide clarity to procurement agencies, state governments and farmers as preparations for the 2026–27 agricultural season gather pace.

FarmNews | Business Upturn

Cabinet clears massive ₹2.6 lakh crore MSP package for kharif crops ahead of sowing season