Cabinet approves Minimum Support Prices (MSP) for Kharif Crops for Marketing Season 2026-27

📌 Summary:

• CCEA chaired by PM Modi approved increase in MSP for 14 Kharif Crops for Marketing Season 2026-27 to ensure remunerative prices to growers
• Highest absolute increase recommended for Sunflower Seed (+₹622 per quintal), followed by Cotton (+₹557), Nigerseed (+₹515) and Sesamum (+₹500)
• MSP fixed in line with Union Budget 2018-19 announcement of MSP at minimum 1.5x All-India weighted average cost of production
• Expected margin over cost of production is highest for Bajra (77%), followed by Tur/Arhar, Maize and Urad
• Scheme covers 14 crops including paddy, jowar, bajra, ragi, maize, tur, urad, moong, groundnut, soybean, sunflower, sesamum, nigerseed and cotton

🎯 UPSC Relevance: GS3 — Indian Economy (Agriculture). Core scheme for farm income security; links to issues of agricultural marketing, food security, and farmer protests.

📝 Prelims Facts:

• MSP is announced by CCEA on recommendation of Commission for Agricultural Costs and Prices (CACP)
• 14 Kharif crops covered under MSP regime for 2026-27
• Budget 2018-19 fixed MSP at minimum 1.5x A2+FL cost of production
• CACP considers A2, A2+FL, and C2 costs while recommending MSP

🔑 Key Term: A2+FL Cost — Actual paid-out costs (A2) plus imputed value of family labour (FL); the cost concept used for MSP determination.