The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the revised Minimum Support Prices (MSP) for all mandated Rabi crops for the Marketing Season 2027–28.
This step aims to ensure fair and remunerative prices for farmers, incentivizing higher production and encouraging crop diversification away from traditional cereal monoculture toward oilseeds and pulses.
Crop-Wise Price Revisions and Margins
The absolute highest increase in MSP was given to Safflower at Rs. 675 per quintal, bringing its price to Rs. 7,215 per quintal, followed by Rapeseed & Mustard with a Rs. 413 per quintal hike to Rs. 6,613 per quintal.
Also Read: Green Energy Corridor Phase-III: List of Stocks That Could Ride India’s ₹1.86 Lakh Crore Power Capex Wave
Lentil (Masur) saw an increase of Rs. 390 to reach Rs. 7,390 per quintal, while Barley rose by Rs. 136 to Rs. 2,286 per quintal, Gram by Rs. 83 to Rs. 5,958 per quintal, and Wheat by Rs. 25 to Rs. 2,610 per quintal. The revised rates ensure margins over the estimated cost of production ranging from 50% for safflower up to 106% for wheat.
Alignment with Policy Goals and Procurement Trends
The updated MSP rates fulfill the Union Budget 2018–19 mandate to set prices at a minimum of 1.5 times the all-India weighted average cost of production. According to the release, government procurement of six major Rabi crops reached 3,921 LMT between 2014–15 and 2025–26, a significant rise from the 2,302 LMT recorded during 2004–05 to 2013–14, resulting in total MSP payouts of Rs. 8.36 lakh crore to Rabi crop farmers during this period.
Coromandel International Ltd
Coromandel International is a major manufacturer of fertilisers, crop nutrients and crop-protection products. Higher MSPs for pulses and oilseeds could improve farmer economics and potentially support demand for agricultural inputs.
Also read: Avalon Technologies: ₹3,200 Crore Revenue Target, Semiconductor Push and Other Key Points Worth Watching
With a market capitalisation of Rs. 51,272 cr, the shares of Coromandel International Ltd were trading at Rs. 1737.70 per share, down from its previous close of Rs. 1,753.75 per share.
Rallis India Ltd
Rallis India operates across seeds, crop-protection products and other agricultural inputs. The government’s focus on crop diversification could encourage cultivation of pulses and oilseeds, potentially supporting demand for its products.
With a market capitalisation of Rs. 3,892 cr, the shares of Rallis India Ltd were trading at Rs. 200.15 per share, up from its previous close of Rs. 199.80 per share.
Kaveri Seed Company Ltd
Kaveri Seed is engaged in the development and sale of seeds for various crops. Higher MSPs could influence farmers to allocate more acreage to supported crops, potentially benefiting demand for quality seeds.
With a market capitalisation of Rs. 3,680 cr, the shares of Kaveri Seed Company Ltd were trading at Rs. 715.45 per share, down from its previous close of Rs. 726.65 per share.
Godrej Agrovet Ltd
Godrej Agrovet operates across animal feed, crop protection, oil palm and other agriculture-related businesses. Greater emphasis on oilseeds and crop diversification could support activity across its agriculture-focused businesses.
With a market capitalisation of Rs. 11,982 cr, the shares of Godrej Agrovet Ltd were trading at Rs. 622.75 per share, down from its previous close of Rs. 623 per share.
Chambal Fertilisers & Chemicals Ltd
Chambal Fertilisers is a major urea manufacturer and also has businesses in agri-inputs. Better farm economics following higher MSPs could support fertiliser demand during the Rabi cultivation cycle.
Also read: How Lodha Developers Plans to Make ₹11,000 Cr From Data Centres Business
With a market capitalisation of Rs. 16,090 cr, the shares of Chambal Fertilisers & Chemicals Ltd were trading at Rs. 401.60 per share, down from its previous close of Rs. 409.25 per share.
UPL Ltd
UPL provides crop-protection products, seeds and other agricultural solutions across multiple markets. Higher MSPs could encourage crop cultivation and potentially support demand for crop-protection products, although the company’s operations are globally diversified.
With a market capitalisation of Rs. 44,690 cr, the shares of UPL Ltd were trading at Rs. 529.40 per share, down from its previous close of Rs. 538.95 per share.