India Raises MSP for Rabi Crops, Safflower Sees Biggest Increase

The Indian government has approved higher support prices for six mandated rabi crops, with safflower receiving the largest absolute increase of Rs 675 per quintal. The new prices are linked to the cost-of-production principle, which aims to give farmers a reasonable return over their expenses.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved the increase in Minimum Support Prices (MSP) for the Rabi Marketing Season 2027-28. The MSP for wheat has been fixed at Rs 2,610 per quintal, an increase of Rs 25 per quintal over the previous season.

The government has stated that the increase in MSPs is in line with the Union Budget 2018-19 announcement of fixing MSP at a level of at least 1.5 times the all-India weighted average cost of production. The expected return over the cost of production is highest for wheat at 106 per cent, while it is lowest for safflower at 50 per cent.