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Government Upholds Cost-Plus-50% MSP Principle for 2026-27 Season: Vaishnaw
- •Union Minister Ashwini Vaishnaw confirmed the government's commitment to fixing Minimum Support Prices (MSP) at least 50 percent above the cost of production for the 2026-27 season.
- •The Cabinet Committee on Economic Affairs approved MSPs for six Rabi crops for the 2027-28 marketing season, projecting a payout of Rs 90,962 crore to farmers.
- •Wheat MSP increased by Rs 25 to Rs 2,610 per quintal for 2026-27, providing farmers a 106 percent margin over the estimated cost of production.
- •Vaishnaw stated that the Commission for Agricultural Costs and Prices (CACP) considers various factors to prevent higher MSPs from fueling food inflation.
- •The Cabinet also advanced green energy initiatives, including battery storage as a key component and the third phase of the Green Energy Corridor to strengthen transmission infrastructure.
Key Questions Answered
The minimum support price (MSP) for wheat has been raised to Rs 2,610 per quintal from Rs 2,585 in 2026-27, which marks an increase of Rs 25.
The government maintains the cost-plus-50% principle, ensuring that minimum support prices are fixed at least 50 percent above the estimated cost of production. Additionally, the Commission for Agricultural Costs and Prices (CACP) considers various factors when recommending support prices.
The Cabinet approved measures to expand renewable-energy infrastructure, highlighting battery storage as a key strategy to smooth out fluctuations in electricity generation. Furthermore, the government advanced to the third phase of the Green Energy Corridor to strengthen transmission infrastructure for evacuating renewable power to the grid.
