The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on 13 May 2026 approved the increase in Minimum Support Prices (MSP) for fourteen kharif crops for the 2026-27 marketing season to ensure remunerative returns to growers and to encourage crop diversification across rainfed regions of India. The Ministry of Agriculture and Farmers Welfare announced that the MSP for common paddy has been raised by Rs 72 to Rs 2,441 per quintal, while Grade A paddy has been fixed at Rs 2,461 per quintal for the upcoming sowing season. The highest absolute increase was awarded to sunflower seed with a hike of Rs 622 to Rs 8,343 per quintal, followed by cotton at Rs 557, nigerseed at Rs 515 and sesamum at Rs 500 per quintal. The MSP exercise is based on the recommendations of the Commission for Agricultural Costs and Prices and follows the Union Budget 2018-19 commitment of fixing MSP at a level of at least 1.5 times the all-India weighted average cost of production. According to the official briefing, the cost-plus margin works out to nearly 50 per cent for paddy, around 53 per cent for ragi, 59 per cent for bajra and 77 per cent for maize. The decision is expected to benefit nearly 14 crore farming families ahead of the southwest monsoon and supports the Government push toward oilseed and pulses self-reliance under the National Mission on Edible Oils and the Atmanirbhar Bharat agriculture vision. The Cabinet on the same day also cleared a Rs 37,500 crore incentive scheme for coal gasification.
Cabinet Committee on Economic Affairs on 13 May 2026 Approves Higher Minimum Support Prices for 14 Kharif Crops for Marketing Season 2026-27 With Common Paddy Hiked by Rs 72 to Rs 2,441 Per Quintal and Steepest Absolute Hike of Rs 622 for Sunflower Seed
CCEA on 13 May 2026 approved higher MSP for 14 kharif crops for 2026-27 season; common paddy raised by Rs 72 to Rs 2,441 per quintal and sunflower seed got the steepest absolute hike of Rs 622 to Rs 8,343 per quintal.
Key facts
- The CCEA chaired by PM Modi approved MSP for 14 kharif crops for marketing season 2026-27 on 13 May 2026.
- Common paddy MSP raised by Rs 72 to Rs 2,441 per quintal; Grade A paddy fixed at Rs 2,461 per quintal.
- Steepest absolute hike was Rs 622 for sunflower seed taking its MSP to Rs 8,343 per quintal; cotton hiked by Rs 557.
- MSP follows the 2018-19 Budget principle of at least 1.5 times all-India weighted average cost of production.
- Margin over cost works out to about 50 per cent for paddy, 53 per cent for ragi, 59 per cent for bajra and 77 per cent for maize.
- Cabinet on the same day cleared a Rs 37,500 crore incentive scheme to promote coal gasification.
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Practice MCQ from this story
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Consider the following statements regarding the Minimum Support Prices for Kharif crops for marketing season 2026-27 approved by the Cabinet on 13 May 2026:\n1. The MSP for common paddy was raised by Rs 72 to Rs 2,441 per quintal.\n2. Sunflower seed received the highest absolute hike of Rs 622 per quintal among all kharif crops.\nWhich of the statements given above is/are correct?
Both statements are correct. The CCEA on 13 May 2026 raised common paddy MSP by Rs 72 to Rs 2,441 per quintal and approved the steepest absolute hike of Rs 622 for sunflower seed taking it to Rs 8,343 per quintal.
Source: DD News / Cabinet Press Release
Frequently asked questions
What is the new Minimum Support Price approved for common paddy for kharif marketing season 2026-27?
The Cabinet Committee on Economic Affairs has fixed the MSP for common paddy at Rs 2,441 per quintal, an increase of Rs 72 over the previous season, while Grade A paddy MSP has been set at Rs 2,461 per quintal.
Which kharif crop received the highest absolute hike in MSP for 2026-27?
Sunflower seed received the highest absolute hike of Rs 622 per quintal, taking its MSP to Rs 8,343 per quintal, followed by cotton at Rs 557, nigerseed at Rs 515 and sesamum at Rs 500.
On what principle is the MSP for kharif crops calculated?
As per the Union Budget 2018-19 commitment, MSP is fixed at a level of at least 1.5 times the all-India weighted average cost of production calculated by the Commission for Agricultural Costs and Prices (CACP).
What other major decision did the Cabinet take on 13 May 2026 alongside the MSP hike?
The Cabinet also cleared a Rs 37,500 crore incentive scheme to promote coal gasification, supporting the country push for indigenous syngas-based industrial feedstock and energy security.
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