Paddy that Punjab buys in its mandis is priced at the MSP set by the Cabinet Committee on Economic Affairs

Background

As rain damages paddy in Punjab's grain markets during procurement in October 2026, the price at which that paddy is bought is the minimum support price (MSP). MSPs for kharif crops are approved by the Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister. Following the Union Budget 2018-19 announcement, MSP is fixed at a level of at least 1.5 times the all-India weighted average cost of production. For Kharif Marketing Season 2026-27, approved in May 2026, the MSP for common paddy is Rs 2,441 per quintal, Rs 72 more than the Rs 2,369 of 2025-26. Grade A paddy carries a higher MSP of Rs 2,461 per quintal for 2026-27.