The Cabinet Committee on Economic Affairs approved higher Minimum Support Prices for 14 Kharif crops for the 2026-27 marketing season, lifting the MSP for common paddy to Rs 2,441 per quintal and Grade A paddy to Rs 2,461 per quintal — a national decision Prime Minister Narendra Modi said would ensure crores of farmers receive fair, profitable prices for their produce, with the estimated payout to farmers nationally pegged at Rs 2.60 lakh crore for the season. But in Assam, where paddy is the dominant kharif crop and the previous season's MSP hike had already drawn criticism for failing to reach many farmers in practice, the announcement lands against a backdrop of persistent procurement gaps that raise real questions about how much of that higher price actually reaches growers on the ground.
The core problem is not the MSP figure itself but the mechanism for actually getting farmers paid at that rate. Government procurement infrastructure — limited procurement centres, delays, and capacity constraints — has repeatedly left farmers unable to sell directly to state or central agencies at the MSP, pushing many toward middlemen and private traders who have been documented paying Rs 800 to Rs 1,100 less per quintal than the government-supported price, in some cases making it difficult for farmers to even recover their production costs.
Background
Assam's Kharif Marketing Season (KMS) 2025-26 illustrates the structural gap between MSP policy and MSP reality. For that season, common paddy MSP stood at Rs 2,369 per quintal and Grade A at Rs 2,389 — themselves a Rs 69 per quintal increase over the prior year — with the state setting a procurement target of 7.55 lakh MT rising toward a longer-term goal of 24 lakh MT by 2026, a figure officials say is necessary to meet the state's obligations under the National Food Security Act and to secure related incentives from the Centre.
Procurement data through the season showed real but incomplete progress: the Food Corporation of India purchased 15,151.64 MT against an 18,000 MT target (with 1,503 participating farmers), while the Assam State Agricultural Marketing Board achieved one of the stronger completion rates, procuring 5,196.06 MT against a 5,500 MT target with 425 farmers participating. State-level figures showed Assam procuring roughly 6 lakh MT of paddy, about 83% of a broader target — a respectable completion rate on paper, but one that still leaves a meaningful share of farmers' harvest outside the MSP-guaranteed channel and therefore exposed to whatever price private buyers are willing to offer.
The gap between MSP as a stated price and MSP as an actually received price has become politically sensitive enough that Chief Minister Himanta Biswa Sarma has directly warned traders against exploiting farmers, at one point publicly enforcing a procurement price of Rs 2,670 per quintal and pledging punitive action against violations of procurement norms — an unusually direct executive intervention in what is normally treated as a market mechanism, reflecting how acute the distress-sale problem had become.
Key Details
- New 2026-27 Kharif MSP: Common paddy Rs 2,441/quintal, Grade A paddy Rs 2,461/quintal — a Rs 72 increase over the previous season's common paddy rate.
- National procurement estimate: Over 824 lakh metric tonnes of Kharif crops expected to be procured nationally in the 2026-27 season, with an estimated farmer payout of Rs 2.60 lakh crore.
- Assam's prior-season MSP: Rs 2,369/quintal common, Rs 2,389/quintal Grade A for KMS 2025-26 — itself a Rs 69 increase over the year before.
- Assam procurement performance: Roughly 6 lakh MT procured against target, about 83% completion; FCI purchased 15,151.64 MT of an 18,000 MT target; ASAMB procured 5,196.06 MT against 5,500 MT.
- Farmer registration: 70,032 farmers registered for KMS 2025-26 first crop procurement as of June 11, 2026, out of a much larger total farming population.
- Distress sale gap: Farmers unable to access government procurement channels reportedly received Rs 800-1,100 less per quintal from middlemen and private traders than the government-supported price.
- Government response: CM Sarma has publicly warned traders against exploitative pricing and enforced specific procurement prices in at least one instance, with punitive action threatened for norm violations.
- Longer-term target: Assam aims to procure 24 lakh MT by 2026 to meet National Food Security Act obligations and secure central incentives.
At a Glance
| Season | Common Paddy MSP | Grade A MSP | Change |
|---|---|---|---|
| KMS 2024-25 | Rs 2,300/quintal (approx.) | Rs 2,320/quintal (approx.) | Baseline |
| KMS 2025-26 | Rs 2,369/quintal | Rs 2,389/quintal | +Rs 69 |
| KMS 2026-27 | Rs 2,441/quintal | Rs 2,461/quintal | +Rs 72 |
| Actual price via middlemen (documented cases) | Rs 800-1,100 below MSP | ||
Local Impact
For Assam's paddy farmers, the practical impact of each year's MSP hike depends entirely on whether they can actually access a government procurement centre — and the evidence suggests a significant share cannot. Limited procurement infrastructure, particularly in more remote and flood-affected districts, combined with processing delays during the harvest window, means that farmers facing immediate cash needs (loan repayments, input costs for the next season, household expenses) often cannot wait for slow-moving government procurement and instead sell to whichever private buyer is available nearby, even at a steep discount to the announced MSP.
This dynamic effectively creates two different paddy economies within the same state: farmers with reliable access to FCI or ASAMB procurement centres who receive close to the full MSP, and farmers — often in more remote or infrastructure-poor areas — who sell into an informal market at prices Rs 800-1,100 below what the government has promised. Given that flood-affected districts already face disrupted harvests and damaged crops in many kharif seasons, the farmers most likely to face urgent cash needs are often precisely those with the weakest access to formal procurement.
The Karbi Anglong Autonomous Council's consideration of setting up rice mills in each Legislative Autonomous Council under its jurisdiction reflects one local response to this gap — an attempt to build processing and procurement infrastructure closer to farmers rather than requiring them to transport paddy to distant centres, though whether this model scales beyond one autonomous council remains to be seen.
What Happens Next
With the new 2026-27 MSP now approved at Rs 2,441/quintal for common paddy, the real test — as in previous seasons — will be procurement execution rather than the price announcement itself. Whether Assam's government agencies expand procurement centre coverage and speed up processing enough to close the gap that pushed farmers toward distress sales in 2025-26 will determine whether this year's higher MSP actually translates into higher farmer incomes, or simply raises the benchmark price that private buyers can undercut. Given CM Sarma's direct interventions in the previous season, continued executive pressure on traders and procurement agencies is likely as the new season's harvest and procurement window approaches, alongside potential expansion of local processing infrastructure of the kind being explored in Karbi Anglong.
Frequently Asked Questions
What is the new MSP for paddy in Assam for 2026-27?
Rs 2,441 per quintal for common paddy and Rs 2,461 per quintal for Grade A paddy, following the Cabinet Committee on Economic Affairs' approval of Kharif MSP hikes for the 2026-27 marketing season.
Are Assam's paddy farmers actually receiving the MSP?
Not universally. Many farmers unable to access government procurement centres have reportedly sold to middlemen and private traders at prices Rs 800-1,100 below the government-supported price.
Why don't all farmers sell through government procurement?
Limited procurement centres, processing delays, capacity constraints, and farmers' urgent cash needs (loan repayments, input costs) that make waiting for government procurement impractical.
How much paddy did Assam procure in the last season?
Roughly 6 lakh MT, about 83% of the state's procurement target for KMS 2025-26, with FCI and ASAMB both falling somewhat short of their individual targets.
What has the state government done about exploitative pricing?
Chief Minister Himanta Biswa Sarma has publicly warned traders against exploiting farmers, enforced specific procurement prices in at least one documented instance, and threatened punitive action against procurement norm violations.
What is Assam's longer-term procurement target?
24 lakh MT by 2026, intended to meet the state's obligations under the National Food Security Act and secure related incentives from the Centre.
How many farmers registered for procurement in the last season?
70,032 farmers registered for KMS 2025-26 first crop procurement as of June 11, 2026.
Is there a local solution being explored for procurement gaps?
The Karbi Anglong Autonomous Council is considering setting up rice mills in each Legislative Autonomous Council under its jurisdiction to build processing capacity closer to farmers.
Sources
Sentinel Assam, India Today NE, News on Air, DD News, Krishi Dunia.






