The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi on Wednesday announced a 6.59 per cent increase in the Minimum Support Price (MSP) for wheat to `2,585 per quintal for the 2026-27 marketing year, up from `2,425 per quintal last year, as part of its efforts to boost domestic output and ensure remunerative prices to farmers.
The increased MSP for rabi crops is aimed at ensuring remunerative prices for farmers and incentivising crop diversification.
Further, in a festive bonanza to Union Government employees and pensioners, the Union Cabinet also decided to increase Dearness Allowance (DA), Dearness Relief (DR) by 3 per cent envisaging an annual outlay of `10,083.96 crore. Besides, the Union Cabinet on Wednesday approved opening of 57 new Kendriya Vidyalayas (KVs) which would benefit over 86,000 students.
The wheat MSP is `2,425 per quintal for the 2025-26 marketing year (April-March). According to the CCEA decision, the Modi government has increased the MSP of Rabi Crops for Marketing Season 2026-27, to ensure remunerative prices to the growers for their produce. Last year, MSP for wheat was fixed at `2,425 per quintal for the 2026 marketing year. Wheat is the main rabi (winter) crop, with sowing beginning from late October, while harvesting from March onwards.
In absolute terms, the highest increase has been announced for safflower at `600 per quintal, followed by lentil (masur) at `300 per quintal. For rapeseed and mustard, the increase is `250 per quintal; gram `225 per quintal; barley `170 per quintal; and wheat `160 per quintal.