NEW DELHI, October 7 — The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday sanctioned an upward revision in the Minimum Support Prices (MSP) for all mandated Rabi crops for the Rabi Marketing Season (RMS 2027-28) to guarantee remunerative price realizations for agrarian producers.
Under the price determinations notified by the Ministry of Agriculture and Farmers' Welfare, the MSP for Wheat was scaled up by ₹150 per quintal, fixing the new procurement baseline at ₹2,425 per quintal. To promote dietary diversification and reduce edible oil imports, the Cabinet approved substantial hikes for oilseeds and pulses: Rapeseed & Mustard was raised by ₹300 per quintal (to ₹5,950/quintal), Lentil (Masur) by ₹275 per quintal, and Gram (Chana) by ₹210 per quintal.
The official briefing emphasized that the revised price grid maintains fidelity to the Centre's stated policy commitment of pegging MSP at least 50 percent above the all-India weighted average cost of production (Cost A2+FL). For wheat, the procurement price ensures a margin of approximately 105 percent over production expenditure, providing robust economic incentives ahead of the national winter sowing cycle.
The institutional mechanics of the Commission for Agricultural Costs and Prices (CACP), the Swaminathan Committee recommendations on price deficiency (Cost A2+FL vs Comprehensive Cost C2), and statutory agricultural price support mechanisms are high-frequency topics in UPSC Civil Services (GS-III: Agricultural Economics) and NABARD Grade A examinations. Candidates should note that the CACP was established in 1965 (originally as the Agricultural Prices Commission) and operates as an attached office under the Ministry of Agriculture, recommending baseline MSPs for 22 mandated agricultural crops.