Government Hikes Wheat MSP by ₹160 Per Quintal for 2026-27 Season
The Union Cabinet approved a 6.59% hike in the Minimum Support Price (MSP) for wheat, raising it by ₹160 to ₹2,585 per quintal for the 2026-27 marketing year. The government also increased the MSP for other Rabi crops, including lentil, mustard, and barley, stating the decision aligns with its policy of ensuring prices at least 1.5 times the cost of production. A new mission aimed at achieving self-reliance in pulses was also approved to reduce import dependency.
Unpacked:
The MSP system aims to ensure farmers receive a guaranteed price for their crops, protecting them from market fluctuations and distress sales. It is designed to stabilize farmer incomes and encourage agricultural production, particularly for staple crops like wheat and rice.
MSP benefits are unevenly distributed, with states like Punjab and Andhra Pradesh seeing high procurement rates and income security. In contrast, states such as West Bengal and Uttar Pradesh have lower MSP procurement, meaning many farmers sell below MSP due to weak market infrastructure.
Reducing import dependency on pulses is vital because India is a major consumer and often faces shortages, leading to high imports. Boosting domestic production increases food security, stabilizes prices, and supports farmer incomes.
MSP implementation for crops like pulses and oilseeds is limited by weak procurement infrastructure and market access. As a result, farmers growing these crops often don't benefit from MSP, leading to a bias toward wheat and rice and shortages of other essential commodities.