India raises minimum procurement prices for six rabi crops

The Indian cabinet has decided to significantly increase the minimum procurement prices for six rabi crops in the 2026/27 season. Wheat will see the biggest increase — by almost 6.6% to 2,585 rupees per quintal (≈ $310 per tonne) against 2,425 rupees (≈ $291) in the previous season.

Safflower received the highest absolute and percentage increase, demonstrating the government’s desire to stimulate oilseed production by diversifying crops. The main regions for growing safflower are the states of Maharashtra and Karnataka, but it is also cultivated in Andhra Pradesh, Telangana, Gujarat, Madhya Pradesh and Rajasthan.

According to government forecasts, wheat cultivation will receive the highest profit as a percentage of cost — the margin will be 109% of the average Indian costs. This is followed by rapeseed and mustard (93%), lentils (89%), chickpeas (59%), barley (58%) and safflower (50%).

The government is expected to procure about 29.7 million tonnes of these crops during the MY 2026/27 procurement, with the total payment to farmers reaching Rs 84,263 crore (≈ $10 billion). This will be a significant financial incentive for farmers ahead of the new sowing season.

The absolute increase in the minimum procurement price will be 600 rupees per quintal for safflower (≈ $72 per ton), 300 rupees for lentils (≈ $36), 250 rupees for rapeseed and mustard (≈ $30), 225 rupees for chickpeas (≈ $27), 170 rupees for barley (≈ $20) and 160 rupees for wheat (≈ $19).

Tags: India, prices, wheat