Govt raises wheat MSP by 6.59 pc to Rs 2,585 per quintal for 2026-27
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New Delhi (PTI): The government on Wednesday announced a 6.59 per cent increase in the minimum support price (MSP) for wheat to Rs 2,585 per quintal for the 2026-27 marketing year, up from Rs 2,425 per quintal last year.
The decision was taken at a Cabinet meeting chaired by Prime Minister Narendra Modi.
Briefing the media, Information and Broadcasting Minister Ashwini Vaishnaw said the Cabinet had approved the MSP for six rabi crops for 2026-27 based on recommendations of the Commission for Agricultural Costs and Prices (CACP).
In absolute terms, the highest increase has been announced for safflower at Rs 600 per quintal, followed by lentil (masur) at Rs 300 per quintal. For rapeseed and mustard, the increase is Rs 250 per quintal; gram Rs 225 per quintal; barley Rs 170 per quintal; and wheat Rs 160 per quintal.
The MSP for barley has been increased to Rs 2,150 per quintal from Rs 1,980 per quintal.
Among key rabi pulses, the support price for gram has been fixed at Rs 5,875 per quintal, up from Rs 5,650 per quintal, while lentil MSP has been raised to Rs 7,000 per quintal from Rs 6,700 per quintal.
For oilseeds, the MSP of rapeseed and mustard has been raised to Rs 6,200 per quintal from Rs 5,950 per quintal, while safflower support price has been increased to Rs 6,540 per quintal from Rs 5,940 per quintal.
The increased MSP for rabi crops is aimed at ensuring remunerative prices for farmers and incentivising crop diversification.
The hike is in line with the Union Budget 2018-19 announcement of fixing MSP at a level of at least 1.5 times the all-India weighted average cost of production.
The expected margin over all-India weighted average cost of production is 109 per cent for wheat, 93 per cent for rapeseed and mustard, 89 per cent for lentil, 59 per cent for gram, 58 per cent for barley, and 50 per cent for safflower.
Wheat is the main rabi (winter) crop, with sowing beginning from late October and harvesting from March onwards.
The wheat marketing year starts from April and much of the grain is procured by June. Other rabi crops include jowar, barley, gram and lentil.
The government has set a record wheat production target of 119 million tonne for the 2025-26 crop year (July-June), as against the actual output estimated at a record 117.5 million tonne for 2024-25.
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India, New Zealand ink free trade agreement
New Delhi (PTI): India and New Zealand on Monday inked a free trade agreement, aimed at boosting two-way commerce and investments.
The pact was signed by Commerce and Industry Minister Piyush Goyal and visiting New Zealand's Trade and Investment Minister Todd McClay.
The FTA provides duty-free access for 100 per cent of India's exports to New Zealand, covering all tariff lines or produce categories, and is expected to significantly boost MSMEs and employment by enhancing competitiveness in labour-intensive sectors such as textiles, apparel, leather, footwear, gems and jewellery, engineering goods, and processed foods.
Earlier, New Zealand maintained peak tariffs of up to 10 per cent on key Indian exports, including ceramics, carpets, automobiles, and auto components.
With zero-duty market access from entry into force as New Zealand's other trade partners, Indian products will be fully competitive in that country, enjoying a level playing field.
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Significantly, India also secured duty-free inputs for its manufacturing sector, including wooden logs, coking coal, and waste and scraps of metals, lowering production costs and enhancing the global competitiveness of the Indian industry.
On the other hand, India has offered tariff liberalisation on 70.03 per cent of tariff lines covering 95 per cent of bilateral trade value, while keeping 29.97 per cent of tariff lines excluded to protect India's sensitive sectors.
The products that are kept in exclusion are mainly -- dairy (milk, cream, whey, yoghurt, cheese etc.), animal products (other than sheep meat), agricultural products (onions, chana, peas, corn, almonds), sugar, artificial honey, animal, vegetable or microbial fats and oils, arms and ammunition, gems and jewellery, copper and articles thereof (cathodes, cartridges, rods, bars, coils), aluminium and articles thereof (ingots, billets, wire bars) among others.
On 30 per cent of tariff lines of New Zealand, India will provide duty elimination on goods such as wood, wool, sheep meat, and leather-raw hides.
Similarly, 35.60 per cent of tariff lines are subject to phased elimination over 3, 5, 7, and 10 years, including petroleum oil, malt extract, vegetable oils, selected electrical and mechanical machinery, and peptones.
New Zealand products which enjoy tariff reductions include wine, pharmaceutical drugs, polymers, aluminum, iron and steel articles, and goods that only 0.06 per cent fall under tariff rate quotas, including Manuka honey, apples, kiwi fruit, and albumins, including milk albumin.
The FTA also includes a commitment to facilitate USD 20 billion in investment into India.
A rebalancing clause is incorporated into the Agreement to provide a framework for addressing any shortfall in investment delivery, thereby ensuring robust and tangible economic outcomes.
Total bilateral trade in goods and services reached USD 2.4 billion in 2024.
