Rabi MSP 2027–28: the price announcement and the purchase
Wheat’s support price rises by less than 1%, while safflower’s rises by over 10%. Whether farmers receive these prices depends on the purchasing arrangements.
The government has set wheat’s minimum support price at ₹2,610 a quintal for the 2027–28 marketing season, ₹25 above the previous season. That is an increase of 0.97%. Safflower’s support price rises by 10.32%, the largest increase among the six rabi crops covered by the September 30 decision.
The announcement gives farmers a price reference before winter sowing. Receiving that price depends on the crop, the purchasing arrangements and the produce offered for sale.
Six crops, different increases
A quintal is 100 kilograms. The Cabinet announcement sets these prices:
| Crop | 2026–27 MSP | 2027–28 MSP | Increase | Increase (%) |
|---|---|---|---|---|
| Wheat | ₹2,585 | ₹2,610 | ₹25 | 0.97% |
| Barley | ₹2,150 | ₹2,286 | ₹136 | 6.33% |
| Gram | ₹5,875 | ₹5,958 | ₹83 | 1.41% |
| Lentil (masur) | ₹7,000 | ₹7,390 | ₹390 | 5.57% |
| Rapeseed and mustard | ₹6,200 | ₹6,613 | ₹413 | 6.66% |
| Safflower | ₹6,540 | ₹7,215 | ₹675 | 10.32% |
Prices and rupee increases are per quintal. Percentage increases are calculated from the two announced prices and rounded to two decimals.
The government says the changes are intended to encourage crop diversification. Larger increases for some oilseeds and pulses give a different price signal from the small wheat increase. Whether farmers change their crop depends on more than that signal: the crop must also fit their land, water, costs and available buyers.
How an announced price becomes a purchase
For wheat, the Food Corporation of India and state agencies buy qualifying produce for the Central Pool, which supplies food-security and welfare programmes. The Department of Food and Public Distribution’s procurement policy describes purchases during a stipulated period at MSP, subject to Fair Average Quality standards. Those standards determine whether the produce qualifies for purchase.
The route for pulses and oilseeds differs. Under the Price Support Scheme, procurement operates at a State or Union Territory’s request when market prices fall below MSP during peak harvest. Central nodal agencies buy eligible produce from pre-registered farmers, subject to quality and the specified procurement period. The Agriculture Ministry’s March 2026 explanation also describes an oilseed price-deficiency route: eligible farmers receive a payment towards the price gap rather than the government physically buying their crop.
A farmer selling qualifying wheat through a procurement centre has a different route to the announced price from someone selling another crop to a private trader. Farmers can also choose a better market offer. The new MSP table alone cannot tell us the price of every sale next season.
The cost margin is not a farm’s profit
The announcement reports a 106% margin for wheat over its published production-cost estimate. That estimate is a national weighted average of paid-out expenses plus an estimated value for family labour. The margin means the support price exceeds that cost measure; it is different from the 0.97% increase over last season’s MSP.
An individual farmer’s income still depends on yield, actual costs, the quantity sold and the price received. The next things to watch are the purchasing arrangements for each crop and market prices at harvest. Those will show how the announced support reaches actual sales.
Archival photograph: a wheat field in Uttar Pradesh, February 2019, by Rstv.devesh, CC0, cropped.
