Cabinet Likely To Approve Rabi MSP Hike, Ujjwala Subsidy Extension: Report

The Union Cabinet and the Cabinet Committee on Economic Affairs (CCEA) are expected to take up several major proposals, including a revision in the Minimum Support Price (MSP) of six Rabi crops, according to a report by Moneycontrol.

The CCEA is likely to approve higher MSPs for wheat, barley, gram, masur, rapeseed-mustard and safflower for the Rabi Marketing Season 2027-28.

The government announces MSP rates before the sowing period to provide farmers with assured price support for their produce.

For the previous Rabi Marketing Season 2026-27, the MSP was fixed at ₹2,585 per quintal for wheat, ₹2,150 for barley, ₹5,875 for gram, ₹7,000 for masur, ₹6,200 for rapeseed-mustard and ₹6,540 for safflower.

Green Energy Corridor-III proposal under consideration

As per the report, the Cabinet is also likely to examine the Green Energy Corridor-III scheme, which is estimated to require an investment of around ₹54,000 crore between FY27 and FY33.

The proposed initiative aims to expand transmission infrastructure to support the integration and evacuation of renewable energy into the national power grid.

The government is already implementing the first two phases of the Green Energy Corridor project across 10 states.

According to the Power Ministry, GEC-I and GEC-II are designed to facilitate evacuation of around 44 GW of renewable energy. The third phase is expected to further strengthen infrastructure as India moves towards integrating more than 500 GW of renewable energy capacity by 2030.

The expansion will require significant investment in transmission lines, substations and other grid infrastructure.

PM Ujjwala subsidy continuation likely

The Cabinet may also consider extending subsidy support under the Pradhan Mantri Ujjwala Yojana (PMUY) for FY27. The government currently provides a targeted subsidy of ₹300 per 14.2-kg LPG cylinder to eligible Ujjwala beneficiaries, subject to the approved refill limit.

For FY2025-26, ₹12,000 crore was allocated towards the subsidy programme. The scheme had around 10.33 crore connections as of July 2025.

The continuation of support is aimed at maintaining affordability of LPG cylinders for Ujjwala beneficiaries as the government continues efforts to expand access to clean cooking fuel.