Cabinet Approves Higher MSP for 14 Kharif Crops for 2026-27 Season

The Union Cabinet has sanctioned an increase in the Minimum Support Price (MSP) for 14 Kharif crops for the 2026-27 agricultural year. The decision follows the pricing strategy introduced in the 2018-19 Union Budget, which guarantees a return of at least 50% over the estimated weighted average cost of production. This pricing mechanism provides a safety net against market volatility before the sowing season begins.

Key Policy Drivers

• Covers 14 essential Kharif crops for the upcoming season.
• Fixes MSP at 1.5 times the all-India weighted average cost.
• Aligns with the long-term agricultural price policy framework established in 2018.

Glossary

• Minimum Support Price (MSP): The price at which the government purchases crops from farmers, serving as a floor price to prevent distress sales.
• Kharif Crops: Crops sown during the monsoon season (June–July) and harvested in autumn (September–October), such as paddy and maize.

NaukriSync Exam Angle

Agricultural economics and government schemes. Focus on the 1.5x production cost formula and the specific number of crops (14) covered in this cycle. This data is frequently tested in questions regarding rural development and national economy trends.