The government's Minimum Support Prices (MSPs) for the Rabi Marketing Season (RMS) 2027-28 were approved on 30 September 2026. On 29 October 2026 a PIB Backgrounder set out the full figures, together with data on procurement and payments to farmers.
The headline is in the distribution of the increases. Wheat rose by just ₹25 a quintal, to ₹2,610. Safflower rose by ₹675, and rapeseed and mustard by ₹413.
The government estimates that ₹90,962 crore will be paid to farmers for 324 lakh tonnes of rabi produce in the season.
For the CDS economy paper, the event offers three things to learn: the numbers, the reasoning behind them, and the machinery by which MSP actually reaches a farmer.
The six rabi crops
| Crop | MSP 2026-27 (₹/quintal) | MSP 2027-28 (₹/quintal) | Increase (₹) | Increase (%) | Cost of production 2027-28 (₹) | Margin over cost |
|---|---|---|---|---|---|---|
| Wheat | 2,585 | 2,610 | 25 | about 1.0% | 1,264 | 106% |
| Barley | 2,150 | 2,286 | 136 | about 6.3% | 1,447 | 58% |
| Gram | 5,875 | 5,958 | 83 | about 1.4% | 3,751 | 59% |
| Lentil (masur) | 7,000 | 7,390 | 390 | about 5.6% | 3,854 | 92% |
| Rapeseed and mustard | 6,200 | 6,613 | 413 | about 6.7% | 3,367 | 96% |
| Safflower | 6,540 | 7,215 | 675 | about 10.3% | 4,810 | 50% |
The percentage column is calculated here from the official figures. It shows something the rupee column hides: barley and mustard rose by similar percentages, while gram rose very little.
Reading the table
1. Wheat barely moved. Last year the wheat MSP rose by ₹160, about 6.6%, from ₹2,425 to ₹2,585. This year it rose by about 1%. The reason is in the last column. Wheat's MSP is already more than twice its cost of production, a margin of 106%, the highest of the six crops. The government's rule requires a margin of at least 50%, so it had room to hold wheat back.
2. Pulses and oilseeds were favoured. Safflower, mustard and lentil received the largest increases. India imports much of its edible oil and a large share of its pulses, so higher prices for these crops are meant to persuade farmers to grow more of them. The government calls this crop diversification.
3. Safflower sits exactly at the floor. Even after the largest increase, safflower's margin is 50%, the minimum the policy allows. Its cost of production is high, so a big rupee increase was needed just to meet the rule.
4. Gram was held back. Gram, the most widely grown rabi pulse, received an increase of only ₹83, about 1.4%. The policy favours pulses in general, but not every pulse equally.
Why "2027-28" for a crop sown in 2026
Rabi crops are sown in October to December, after the monsoon, and harvested from March to May. They are sold, or "marketed", from April. A crop sown in the winter of 2026 is therefore marketed in 2027-28, and its MSP is announced before sowing so that farmers know the price when they decide what to plant.
This is a frequent trap. The MSP for the rabi crop sown in 2026 carries the label 2027-28.
Rabi crops need cool weather while they grow and warmer, dry weather at harvest. Winter rain from western disturbances helps them in north-west India. Our notes on agricultural geography explain the cropping seasons.
How an MSP is fixed
The MSP is recommended by the Commission for Agricultural Costs and Prices (CACP) and decided by the Cabinet Committee on Economic Affairs. The government announces MSPs each year for 22 mandated crops. The MSPs for toria and de-husked coconut are derived from those of rapeseed-mustard and copra.
The CACP considers:
- the cost of production;
- demand and supply, at home and abroad;
- domestic and international prices;
- price parity between crops;
- the terms of trade between agriculture and the rest of the economy;
- the likely effect of the price on the wider economy;
- a minimum margin of 50% over the cost of production.
The cost used for the 50% rule includes paid-out costs, such as hired labour, seed, fertiliser, irrigation, fuel and interest, plus the imputed value of family labour. The same formula applies to all 22 crops and all States.
Which cost measure should be used is the main dispute in MSP policy. We explained the A2+FL and C2 measures, and the Swaminathan Commission's recommendation, in our article on PM-AASHA and India's price floor.
From a price to a payment
An MSP matters only if the government actually buys the crop at that price. Different crops reach the government through different channels.
| Crop group | Who buys | Under what |
|---|---|---|
| Wheat and other cereals | Food Corporation of India (FCI) and State agencies | Food-grain procurement |
| Pulses, oilseeds, copra | NAFED and NCCF | Price Support Scheme (PSS) of PM-AASHA, when market prices fall below MSP and a State asks for procurement |
| Tur, urad, masur | Central nodal agencies, from pre-registered farmers | Mission for Aatmanirbharta in Pulses, to 2030-31 |
The Mission for Aatmanirbharta in Pulses was approved in October 2025, with an outlay of ₹11,440 crore for 2025-26 to 2030-31. It aims to raise pulse production to 350 lakh tonnes by 2030-31, from 242 lakh tonnes in 2023-24, and promises assured procurement of tur, urad and masur at MSP. India imported a record quantity of pulses in 2024-25.
The digital platforms
Procurement of pulses and oilseeds now runs through two portals, where farmers register with Aadhaar, land records, bank details and crop details:
| Platform | Agency | Figures in the backgrounder |
|---|---|---|
| e-Samriddhi | NAFED | More than 1.37 crore registered farmers; 81 lakh+ payouts |
| e-Samyukti | NCCF | More than 43 lakh farmers; 37.45 lakh tonnes procured; more than ₹13,000 crore paid (as on 19 October 2026) |
From the 2025-26 season, biometric authentication became mandatory under the PSS, using Aadhaar-enabled point-of-sale machines or facial authentication. Payments go directly to farmers' bank accounts. The aim is to stop traders from selling produce in a farmer's name.
The scale of procurement
The backgrounder compares two periods:
| Measure | 2004-05 to 2013-14 | 2014-15 to 2025-26 |
|---|---|---|
| Wheat procured | 2,254 lakh tonnes | 3,715 lakh tonnes |
| Payments to wheat farmers | ₹2.56 lakh crore | ₹7.31 lakh crore |
| Six rabi crops procured | 2,302 lakh tonnes | 3,921 lakh tonnes |
| Payments for six rabi crops | ₹2.65 lakh crore | ₹8.36 lakh crore |
In RMS 2026-27, wheat procurement was 357.57 lakh tonnes, worth ₹92,432.51 crore, from more than 34 lakh farmers.
Two cautions apply when reading such tables. The second period covers twelve years, the first only ten. And the payments are in current rupees, so part of the increase reflects inflation and higher MSPs rather than larger quantities. The quantity rows are the better guide: wheat procurement rose by about 65% between the two periods.
The figures also show how concentrated procurement is. Wheat makes up almost all of the rabi total, so for most rabi crops other than wheat, procurement at MSP remains limited.
The States behind the crops
The six crops are grown in different regions, which matters for both geography and economics questions:
- Wheat: Uttar Pradesh is the largest producer; Punjab, Madhya Pradesh and Haryana contribute most of the procurement.
- Rapeseed and mustard: Rajasthan is by far the largest producer.
- Gram: Madhya Pradesh leads, with Maharashtra and Rajasthan.
- Safflower: a small crop of the Deccan, mainly in Maharashtra and Karnataka.
These patterns explain why wheat procurement is a north-Indian issue, while the oilseed and pulse increases matter more to Rajasthan, Madhya Pradesh and the Deccan. Our notes on the agricultural economy cover procurement and food security in more detail.
🔑 Revision block
The decision. MSPs for Rabi Marketing Season 2027-28 approved 30 September 2026; PIB Backgrounder 29 October 2026; payout estimated at ₹90,962 crore for 324 lakh tonnes.
The six crops (₹/quintal). Wheat 2,610 (+25); barley 2,286 (+136); gram 5,958 (+83); lentil 7,390 (+390); rapeseed and mustard 6,613 (+413); safflower 7,215 (+675).
Margins over cost. Wheat 106% (highest); mustard 96%; lentil 92%; gram 59%; barley 58%; safflower 50% (the floor).
Rules. CACP recommends, CCEA decides; 22 mandated crops; MSP at least 50% above cost of production, which includes imputed family labour.
Procurement. Cereals via FCI and State agencies; pulses, oilseeds and copra via PSS of PM-AASHA (NAFED, NCCF); Pulses Mission (₹11,440 crore, 2025-26 to 2030-31; 350 lakh tonnes target).
Digital. e-Samriddhi (NAFED, 1.37 crore farmers); e-Samyukti (NCCF, 43 lakh farmers); biometric authentication mandatory under PSS from 2025-26.
Scale. Six rabi crops: 2,302 → 3,921 lakh tonnes and ₹2.65 → ₹8.36 lakh crore (2004-14 vs 2014-26); RMS 2026-27 wheat 357.57 lakh tonnes, 34 lakh farmers.
Season. Sown October-December, harvested March-May, marketed from April; hence "2027-28" for a crop sown in 2026.
🎯 Practice MCQs
Q1. The MSP of wheat for Rabi Marketing Season 2027-28 is: (a) ₹2,425 a quintal (b) ₹2,585 a quintal (c) ₹2,610 a quintal (d) ₹2,275 a quintal
→ (c) It was ₹2,585 in 2026-27 and ₹2,425 in 2025-26.
Q2. Minimum Support Prices are recommended by the: (a) NITI Aayog (b) Food Corporation of India (c) Reserve Bank of India (d) Commission for Agricultural Costs and Prices
→ (d) The final decision is taken by the Cabinet Committee on Economic Affairs.
Q3. Among the six rabi crops, which has the highest estimated margin of MSP over the cost of production for 2027-28? (a) Wheat (b) Rapeseed and mustard (c) Lentil (d) Safflower
→ (a) Wheat's margin is 106%; safflower's is the lowest, at exactly 50%.
Q4. Consider the following statements: 1. The cost of production used for fixing MSP includes the imputed value of family labour. 2. The MSP must be at least 50% above the cost of production. Which is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
→ (c) Both are stated in the policy, and the same formula is applied to all 22 crops.
Q5. The MSP announced in September 2026 for wheat sown in the winter of 2026 is labelled for Marketing Season 2027-28 because: (a) the MSP applies for two years (b) the crop is harvested and marketed from April 2027 (c) the CACP's year runs from January (d) wheat is a kharif crop
→ (b) Rabi crops are sown in October-December and harvested from March to May.
Q6. Procurement of pulses and oilseeds at MSP under the Price Support Scheme is mainly carried out by: (a) FCI and CONCOR (b) NABARD and SIDBI (c) NAFED and NCCF (d) APEDA and MPEDA
→ (c) FCI and State agencies procure wheat and other cereals.
Q7. e-Samriddhi, a procurement platform mentioned in the backgrounder, is run by: (a) NAFED (b) NCCF (c) FCI (d) the CACP
→ (a) NCCF runs e-Samyukti.
Q8. The Mission for Aatmanirbharta in Pulses, approved in October 2025, aims to raise India's pulse production by 2030-31 to about: (a) 242 lakh tonnes (b) 350 lakh tonnes (c) 500 lakh tonnes (d) 1,000 lakh tonnes
→ (b) Production was about 242 lakh tonnes in 2023-24.
Q9. Which State is the largest producer of rapeseed and mustard in India? (a) Punjab (b) Uttar Pradesh (c) West Bengal (d) Rajasthan
→ (d) Uttar Pradesh is the largest producer of wheat.
Q10. Which of the following is NOT a rabi crop? (a) Barley (b) Gram (c) Groundnut (d) Safflower
→ (c) Groundnut is grown mainly as a kharif crop; barley, gram and safflower are among the six rabi crops with MSPs.
📋 How this gets asked (PYQ pattern)
Agricultural pricing is a regular part of the CDS economy section, and it is asked in four ways.
The first is the institution question: who recommends MSP, who decides it, and who procures. CACP, CCEA, FCI, NAFED and NCCF are the bodies to know, and the trap is to name NITI Aayog or the RBI.
The second is the season question: which crops are rabi, which are kharif, when each is sown and harvested, and why the marketing-season label runs one year ahead. Groundnut, cotton and soybean are the common kharif distractors.
The third is the numbers question: the wheat MSP, the largest increase, or the margin over cost. This year's unusual wheat increase of ₹25 makes a likely statement-based item.
The fourth is the policy-debate question: whether MSP should be based on A2+FL or C2 costs, and why procurement is concentrated in wheat and rice. It appears in objective questions and often in SSB discussions on farm policy.
At the SSB, a group discussion on "MSP and farmers' incomes" can use this year's figures. The useful argument is that MSP is being used to steer crop choice towards pulses and oilseeds, but procurement of those crops is still small, so the price signal is weaker than for wheat.
Preparing for CDS? Keep one table of the latest kharif and rabi MSPs, with the increase and margin for each crop, and note which agency procures each. Build the base with our CDS/OTA study material, follow the daily CDS current affairs, and train with serving-standard faculty in the upcoming Cavalier courses in Delhi.
Source: PIB Backgrounder, "Minimum Support Price for Rabi: Marketing Season 2027-28", 29 October 2026. Previous year's MSPs and the Pulses Mission cross-checked with the Cabinet decisions of 1 October 2025 and independent reporting.
✍️ Written by Aditya Tiwari — Economy & current-affairs faculty at The Cavalier. Reviewed by the Cavalier Faculty Desk.