India raises safflower MSP 10.3%, mustard 6.6% for 2027-28
The government raised safflower MSP by 10.3% and mustard MSP by 6.6% for the 2027-28 marketing season to boost oilseed production and reduce India's edible oil import dependence, while wheat's MSP rose by 1%.
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The numbers
| 2027-28 safflower MSP: | Rs 7215/quintal |
|---|---|
| 2027-28 mustard MSP: | Rs 6613/quintal |
Why it matters to operators and investors
Stress-test mustard and safflower oil sourcing costs, pack sizes and pricing for 2027–28, as higher MSPs could pressure margins before domestic supply expands.
What to watch next
- Mustard and safflower sowing-area estimates for 2027-28
- Government oilseed procurement volumes and purchase-centre announcements
- Farmgate oilseed prices relative to the new MSPs
- Domestic oilseed harvest estimates and processor margin disclosures
- Edible-oil import volumes and values after the domestic harvest
The counter-case
Higher MSPs do not guarantee higher oilseed output or cheaper cooking oil. Limited procurement can weaken farmers’ incentives, while acreage, yields and crushing capacity constrain supply gains. If MSPs lift domestic seed costs before productivity improves, processors and retailers could face margin pressure instead. Indian edible-oil prices remain heavily influenced by imported palm, soybean and sunflower oils, import duties and exchange rates.