India hikes minimum support price for kharif paddy in MY 2026-27

India's Cabinet Committee on Economic Affairs approved an increase in minimum support price for the kharif paddy of 14 crops for the marketing year 2026-27 (October-September), state-run Press Information Bureau said May 13.

"The increase in MSP for kharif crops for marketing season 2026-27 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times the all-India weighted average cost of production," the statement said.

Kharif and rabi are the two main crop seasons in India. Kharif, also known as monsoon crops, are sown at the beginning of the rainy season, usually from July to October.

The cabinet chaired by Prime Minister Narendra Modi approved the hike "to ensure remunerative prices to the growers for their produce," according to the statement.

The government will procure common grade kharif paddy at the rate of Rupees 24,410/metric ton, 3% up from the previous minimum support price of Rupees 23,690/mt.

Similarly, the minimum support price of Grade A paddy has been increased to Rupees 24,610/mt, 3% up from the previous support price of Rupees 23,890/mt.

Apart from paddy, MSP has been increased for other crops such as maize, soybean, sunflower seed, cotton, niger seed and sesamum.

"This move by the government is aimed at strengthening and supporting farmers, and it is not expected to adversely impact paddy production during the upcoming kharif season," Mukesh Jain, president of the Rice Exporters Association of Chhattisgarh, said.

"At present, the impact of El Niño on the Indian crop cycle remains uncertain. However, even in the event of a marginal decline in India's kharif production, sufficient rice reserves are available with FCI to maintain overall supply stability and food security in the country," Jain added.

Indian rice prices touched multiyear lows in May amid tepid demand and rabi crop arrivals.

Platts, part of S&P Global Energy, assessed 5% WR at $329/metric ton FOB May 13, $8/mt down month over month, and Parboiled 5% at $319/mt FOB, $23/mt down on the month.