Minimum Support Price (MSP) – Detailed Information

Minimum Support Price (MSP) is a price announced by the Government of India for specified agricultural crops to provide farmers a degree of price protection. The government announces MSP before the relevant marketing season, and procurement by designated agencies takes place subject to applicable quality specifications and procurement arrangements.

What is MSP?

MSP stands for Minimum Support Price.

In simple terms, MSP is a government-announced benchmark/support price for selected crops intended to protect farmers when market prices are low.

For example, if the MSP for a particular crop is ₹5,000 per quintal, government procurement agencies may procure eligible produce at the announced MSP under the applicable procurement system.

Important: MSP does not mean that every farmer automatically receives MSP for every crop or that every quantity produced is automatically purchased by the government. Actual procurement depends on the crop, procurement agency, location, quality specifications and applicable government arrangements.

Who recommends MSP?

MSP is recommended by the Commission for Agricultural Costs and Prices (CACP).

The Government of India considers the CACP's recommendations and takes the final decision on MSP.

While recommending MSP, factors considered include:

• Cost of cultivation/production
• Demand and supply conditions
• Domestic and international prices
• Inter-crop price parity
• Terms of trade between agriculture and non-agriculture
• Implications for consumers
• Impact on the wider economy
• Reasonable margin for farmers

The government has followed, since 2018–19, the principle of keeping MSP at at least 1.5 times the all-India weighted average cost of production for mandated crops.

MSP 2026-27 Overview

• Rabi MSP 2026-27 Approved – 1 October 2025, by the CCEA chaired by Prime Minister Narendra Modi
• Kharif MSP 2026-27 Approved – 13 May 2026, by the CCEA
• Total Crops Covered – 22 mandated crops: 14 Kharif, 6 Rabi, and 2 commercial crops (sugarcane is priced separately via Fair and Remunerative Price, not MSP)
• Estimated Kharif 2026-27 Payout – Around ₹2.6 lakh crore to farmers, with an estimated 824 lakh metric tonnes of Kharif crops to be procured
• Type – Central Government price-support mechanism, procured through FCI (paddy/wheat), NAFED and similar bodies (pulses/oilseeds), and state agencies
• Helpline No – Kisan Call Centre, 1800-180-1551, for procurement-related queries
• States Covered – All-India, though physical procurement infrastructure and volumes vary significantly by state and crop

MSP for Kharif Crops 2026–27

The government approved higher MSPs for Kharif crops for the 2026–27 marketing season.

Note: The figures above are the official 2025–26 comparison figures shown in the government releases; the 2026–27 MSP values should be taken from the latest CCEA notification/table. The 2026–27 Kharif announcement included increases of up to ₹622/quintal for sunflower seed, ₹557 for cotton, ₹515 for nigerseed and ₹500 for sesamum.

MSP for Rabi Crops 2026–27

For Rabi Marketing Season 2026–27, the government increased MSP for all six mandated Rabi crops.

The largest increase was for safflower: ₹600/quintal, followed by lentil at ₹300/quintal.

MSP vs Market Price

These two prices are not necessarily the same.

For example, if the market price of a crop is above MSP, farmers may sell in the open market. If the market price falls, procurement at MSP may become important where government procurement operations are available.

MSP and Farmers' Income

MSP is one component of agricultural income support. A farmer's actual income also depends on:

Income = Quantity sold × Sale price − Cost of cultivation

Therefore, even when MSP is high, profitability depends on:

• Yield per acre
• Seed cost
• Fertilizer cost
• Pesticide cost
• Labour cost
• Irrigation cost
• Machinery cost
• Transportation
• Post-harvest losses
• Actual selling price

Conclusion

Minimum Support Price (MSP) is an important agricultural price-support mechanism in India. It is intended to protect farmers from very low prices and provide remunerative returns for selected crops. The CACP recommends MSP, while the Government of India takes the final decision. Currently, MSP is announced for 22 mandated crops—14 Kharif, 6 Rabi and 2 commercial crops, with additional linked MSP arrangements for Toria and de-husked coconut.

For a farmer, the most important point is that MSP is a support-price policy, not an automatic guarantee that every farmer's entire crop will be purchased at MSP. Procurement depends on the crop, government agency, location, quality and applicable procurement arrangements.

Official references: PIB – MSP for Kharif Crops 2026–27

                                 · PIB – MSP for Rabi Crops 2026–27