Centre hikes wheat MSP by Rs 160 to Rs 2,585 per quintal; rabi procurement target 297 LMT

The Union Cabinet on Wednesday announced a 6.59 per cent increase in the minimum support price (MSP) for wheat to Rs 2,585 per quintal for the 2026-27 marketing year, up Rs 160 per quintal from Rs 2,425 per quintal last year.

Among other Rabi crops, the highest absolute increase was announced for safflower at Rs 600 per quintal, followed by lentil (masur) at Rs 300 per quintal. For rapeseed and mustard, gram and barley, the increases are Rs 250, Rs 225 and Rs 170 per quintal, respectively.

Following the Cabinet meeting, Union Minister for Information and Broadcasting Ashwini Vaishnaw said, “The MSP hike will channel a total of Rs 84,263 crore to farmers. The estimated procurement for the 2026-27 rabi season is expected to be 297 lakh metric tonnes.”

Official sources said the MSP increase was in line with the Union Budget 2018-19 announcement to fix MSP at least 1.5 times the all-India weighted average cost of production. The expected margin over the cost of production is 109 per cent for wheat, 93 per cent for rapeseed & mustard, 89 per cent for lentil, 59 per cent for gram, 58 per cent for barley and 50 per cent for safflower. This increased MSP will ensure remunerative prices for farmers and incentivise crop diversification.

In a related decision, the Cabinet approved a mission to achieve self-reliance in pulses production, aimed at boosting domestic output. Vaishnaw announced the mission would be implemented over six years, from 2025-26 to 2030-31, with a financial outlay of Rs 11,440 crore. Official sources said India was the world's largest producer and consumer of pulses.

While consumption has risen with increasing incomes, domestic production has not kept pace with demand, leading to a 15-20 per cent increase in pulse imports. The mission for aatmanirbharta in pulses, announced in the Union Budget for 2025-26, is designed to reduce import dependency, meet rising demand, maximize production and enhance farmers' income.

The mission will adopt a comprehensive strategy covering research, seed systems, area expansion, procurement and price stability. The emphasis will be on developing and disseminating the latest high-yielding, pest-resistant and climate-resilient varieties of pulses. Multi-location trials will be conducted in major pulse-growing states to ensure regional suitability.

To ensure the availability of quality seeds, states will prepare five-year rolling seed production plans. The ICAR will supervise breeder seed production, while foundation and certified seed production will be carried out by state and Central agencies and monitored through the seed authentication, traceability & holistic inventory (SATHI) portal. To make improved varieties widely available, 126 lakh quintals of certified seeds will be distributed to pulse-growing farmers, covering 370 lakh hectares by 2030-31, sources said.