Government Increases Paddy Minimum Support Price by Rs 72 to Rs 2,441 Per Quintal, Sunflower Seed Prices Record Steepest Rise of Rs 622

Government Announces Hike in Minimum Support Prices for 14 Kharif Crops

The government on Wednesday announced a hike in the Minimum Support Price (MSP) for paddy by Rs 72 to Rs 2,441 per quintal for the 2026-27 kharif marketing season, with steeper increases for pulses, oilseeds, and cotton aimed at reducing import dependency and encouraging crop diversification.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved MSPs for 14 kharif crops ahead of sowing, which typically begins in June with the onset of the southwest monsoon. For paddy, the MSP for common and A-grade varieties stands at Rs 2,441 and Rs 2,461 per quintal, respectively for the 2026-27 kharif marketing season (September-October).

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The highest absolute increase has been recommended for sunflower seed at Rs 622 per quintal, taking its MSP to Rs 8,343 per quintal. Nigerseed (up Rs 515 to Rs 10,052/qtl) and sesamum (up Rs 500 to Rs 10,346/qtl) also received significant increases. Among other oilseeds, soyabean (yellow) was raised by Rs 380 to Rs 5,708 per quintal and groundnut by Rs 254 to Rs 7,517 per quintal.

In pulses, tur (arhar) MSP was raised by Rs 450 to Rs 8,450 per quintal, urad by Rs 400 to Rs 8,200 per quintal, while moong saw a marginal increase of Rs 12 to Rs 8,780 per quintal. For other cereals, jowar (hybrid) MSP has been fixed at Rs 4,023 per quintal (up Rs 324), with the Maldandi variety at Rs 4,073 per quintal.

Bajra has been raised by Rs 125 to Rs 2,900 per quintal, ragi by Rs 319 to Rs 5,205 per quintal, and maize by Rs 10 to Rs 2,410 per quintal. Briefing reporters, Information and Broadcasting Minister Ashwini Vaishnaw said the MSPs have been fixed to ensure remunerative prices for farmers and are at least 50 per cent above the cost of production across all 14 crops.

The margins are estimated to be highest for moong (61 per cent), followed by bajra and maize (56 per cent each) and tur/arhar (54 per cent). For the remaining crops, the margin is pegged at 50 per cent. The government estimates the total payout to farmers at Rs 2.60 lakh crore, with annual procurement projected at 824.41 lakh tonne.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Indian Vegetable Oil Producers' Association (IVPA) President Sudhakar Desai welcomed the MSP hike for oilseeds but reiterated the need for stable and dynamic import duty framework that can respond to changing global price cycles, domestic crop economics, and inflationary trends.