Hike in MSP assures farmers of `84,263 cr for sale of rabi crops
MSP a crucial mechanism which govt supports farmers
image for illustrative purpose
New Delhi: With the increase in minimum support prices (MSP) for various crops announced for the rabi marketing season of 2026-27, farmers are expected to receive Rs84,263 crore as the government’s procurement is estimated at 297 lakh metric, according to an official statement issued on Friday.
MSP payouts to farmers for the government’s purchase of foodgrains have more than tripled from Rs1.06 lakh crore in 2014-15 to Rs3.33 lakh crore in July 2024 - June 2025, while procurement has increased from 761.40 lakh metric tonnes to 1,175 lakh metric tonnes over the same period, benefiting 1.84 crore farmers, the official statement said.
Minimum Support Price (MSP) is a crucial mechanism through which the government supports farmers by purchasing their crops at a pre-determined price. For example, a wheat grower can be assured of Rs2,585 per quintal for his crop (MSP for 2026-27), even if open-market prices dip. Similarly, a paddy farmer can sell to government agencies at Rs2,369/quintal (MSP for 2025-26) for common paddy. This assured price encourages farmers to invest in quality seeds and technology without fear of distress sales.
