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Economics May 27, 2026 6 min read Daily brief · #6 of 43

Foodgrain output seen rising 5% to 376.5 MT

The Ministry of Agriculture and Farmers Welfare released the Third Advance Estimate of major agricultural crops for 2025-26 on May 27, 2026, projecting total...


What Happened

  • The Ministry of Agriculture and Farmers Welfare released the Third Advance Estimate of major agricultural crops for 2025-26 on May 27, 2026, projecting total foodgrain production at 376.563 million tonnes (MT) — the highest ever recorded in India.
  • This represents a 5.3% increase over the previous year's production of 357.732 MT (2024-25).
  • Wheat production is estimated at a record 120.657 MT for 2025-26, up from 117.945 MT the previous year — an increase of approximately 2.29%, achieved despite localised damage from unseasonal rains and hailstorms.
  • Rice production is estimated at 154.024 MT, up from 150.184 MT in 2024-25.
  • Maize production reached a record 55.093 MT — an increase of 11.684 MT over the previous year's 43.409 MT, the sharpest year-on-year jump among major crops.

Static Topic Bridges

Advance Estimates of Crop Production: Methodology and Purpose

The Directorate of Economics and Statistics (DES) under the Ministry of Agriculture and Farmers Welfare releases four Advance Estimates of crop production each year to support policy decisions on pricing, distribution, import/export, and food security. These estimates are released at four specific points in the crop year and become progressively more accurate as actual sowing, yield, and harvest data accumulate.

  • Four Advance Estimates: released at 4 points during the crop year (July-June)
  • First Advance Estimate: released around September/October — covers kharif outlook
  • Second Advance Estimate: released around February — incorporates rabi sowing
  • Third Advance Estimate: released around May — near-final; most widely cited
  • Fourth/Final Estimate: released December/January of the following year
  • Crop year in India: July to June (not calendar year)
  • Estimates are based on crop-cutting experiments (CCE) conducted by state governments across sample fields; yield data combined with reported sowing area data
  • Uses: MSP policy by CACP, buffer stock decisions by FCI, import/export decisions, NFSA entitlement calculations

Connection to this news: The May 27 release is the Third Advance Estimate — the near-final official figure widely used for policy decisions; at 376.56 MT it surpasses India's previous production records.

Commission for Agricultural Costs and Prices (CACP)

The Commission for Agricultural Costs and Prices (CACP) is an attached office under the Ministry of Agriculture and Farmers Welfare that recommends Minimum Support Prices (MSP) for 23 mandated crops. Established in 1965 as the Agricultural Prices Commission and renamed CACP in 1985, it recommends MSP based on cost of production (A2, A2+FL, C2 costs), demand-supply balance, price trends, inter-crop price parity, terms of trade between agriculture and non-agriculture, and food security considerations. CACP recommendations are placed before the Cabinet Committee on Economic Affairs (CCEA) for final MSP announcement.

  • CACP established: 1965 (as Agricultural Prices Commission); renamed CACP in 1985
  • Crops covered: 23 crops (14 kharif, 6 rabi, 2 commercial crops: sugarcane and jute, and copra)
  • Cost definitions used:
  • A2: Actual paid-out costs (seeds, fertilisers, irrigation, hired labour)
  • A2+FL: A2 + imputed value of family labour
  • C2: Comprehensive cost including imputed rent and interest on owned capital
  • Government's MSP commitment: at least 50% returns over C2 costs (announced 2018-19)
  • CACP is not a price-fixing body; it recommends — CCEA decides

Connection to this news: The record production figure (376.56 MT) will be a key input into CACP's next MSP recommendation cycle, as surplus production typically moderates upward MSP pressure while supporting buffer stock targets.

Kharif, Rabi, and Zaid Seasons: Crop Classification

India's agricultural calendar is divided into three cropping seasons based on the monsoon cycle. Kharif (monsoon) crops are sown with the onset of southwest monsoon (June-July) and harvested in September-November. Rabi (winter) crops are sown in October-November and harvested in March-April. Zaid (summer) crops are grown between rabi and kharif seasons (March-June) using irrigation.

  • Kharif major crops: Rice, Maize, Jowar, Bajra, Tur (Arhar), Moong, Urad, Groundnut, Soybean, Cotton, Jute, Sugarcane
  • Rabi major crops: Wheat, Barley, Gram (Chickpea), Lentil (Masur), Mustard/Rapeseed
  • Zaid major crops: Watermelon, Muskmelon, Cucumber, vegetables (short-duration crops)
  • The 376.56 MT figure covers total foodgrains = cereals (rice + wheat + coarse cereals) + pulses

Connection to this news: The record production was driven by strong performance in both kharif (rice, maize) and rabi (wheat) seasons, reflecting successful crop diversification and the impact of ICAR-developed climate-resilient varieties.

National Food Security Act, 2013 (NFSA) and Food Security Architecture

The National Food Security Act, 2013 (NFSA) provides a legal entitlement to subsidised foodgrains to approximately 81.35 crore (813.5 million) beneficiaries — covering 75% of the rural population and 50% of the urban population. The NFSA operates through the Public Distribution System (PDS), which is managed jointly by the central government (procurement, allocation) and state governments (distribution). The Food Corporation of India (FCI) procures, stores, and distributes foodgrains.

  • NFSA coverage: 81.35 crore beneficiaries; 75% rural + 50% urban
  • Entitlement: 5 kg of foodgrain per person per month at highly subsidised prices; Antyodaya Anna Yojana (AAY) households get 35 kg/month
  • PM-GKAY (Pradhan Mantri Garib Kalyan Anna Yojana): free foodgrain scheme (5 kg/month) merged into NFSA framework from January 2024 — expanded coverage at zero cost
  • Buffer stock norms: FCI maintains buffer stocks to ensure food security; norms prescribe minimum stock levels for wheat and rice at the start of each quarter
  • Economic Cost vs Issue Price: Economic cost of rice/wheat to FCI exceeds the central issue price — the difference is the food subsidy borne by the central government
  • Food Subsidy (Union Budget 2024-25): approximately ₹2.05 lakh crore

Connection to this news: Record foodgrain production (376.56 MT) strengthens India's food security buffer, provides room for increased procurement by FCI, and supports continued implementation of NFSA/PM-GKAY entitlements without supply-side constraints.

India's Agricultural Geography: Key Production Belts

India's foodgrain production geography is shaped by agro-climatic zones, soil types, and irrigation availability. The Indo-Gangetic Plain (Punjab, Haryana, Uttar Pradesh, Bihar) dominates wheat and rice production. Peninsular India (Andhra Pradesh, Telangana, Tamil Nadu, Odisha, Chhattisgarh) is the rice bowl of India. Maize has diversified into MP, Karnataka, Bihar, and Telangana.

  • Green Revolution states: Punjab, Haryana, Western UP — highest wheat and rice yields; high HYV seed adoption
  • ICAR (Indian Council of Agricultural Research): apex body for agricultural research; climate-resilient varieties credited for 2025-26 production resilience
  • Key wheat belt: Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, Rajasthan
  • Key rice belt: WB, UP, Punjab, Andhra Pradesh, Telangana, Odisha, Chhattisgarh
  • Maize expansion: driven by ethanol blending policy (EBP) demand — maize is a feedstock for grain-based ethanol distilleries; explains 26.8% YoY jump in maize output

Connection to this news: The 11.7 MT jump in maize output reflects the ethanol blending programme's demand-pull on maize cultivation, illustrating how biofuel policy is reshaping India's crop portfolio alongside traditional food security objectives.

Key Facts & Data

  • Total foodgrain production 2025-26 (3rd Advance Estimate): 376.563 MT — all-time record
  • Previous year (2024-25) production: 357.732 MT
  • Year-on-year increase: 18.83 MT (+5.3%)
  • Wheat 2025-26: 120.657 MT (record; up from 117.945 MT in 2024-25; +2.29%)
  • Rice 2025-26: 154.024 MT (up from 150.184 MT; +2.56%)
  • Maize 2025-26: 55.093 MT (record; up from 43.409 MT; +26.9% — sharpest increase)
  • Estimate released: May 27, 2026 (Third Advance Estimate)
  • Crop year: July–June (India's agricultural year)
  • CACP: established 1965; recommends MSP for 23 mandated crops; MSP to cover at least 50% returns over C2 cost
  • NFSA, 2013: covers 81.35 crore beneficiaries; 75% rural + 50% urban; 5 kg/person/month
  • AAY (Antyodaya Anna Yojana): 35 kg/household/month at subsidised price; for poorest of poor
  • PM-GKAY: merged into NFSA January 2024; free 5 kg/person/month
  • Food subsidy (2024-25 Union Budget): ~₹2.05 lakh crore
  • FCI (Food Corporation of India): procures, stores, distributes under NFSA
On this page
  1. What Happened
  2. Static Topic Bridges
  3. Advance Estimates of Crop Production: Methodology and Purpose
  4. Commission for Agricultural Costs and Prices (CACP)
  5. Kharif, Rabi, and Zaid Seasons: Crop Classification
  6. National Food Security Act, 2013 (NFSA) and Food Security Architecture
  7. India's Agricultural Geography: Key Production Belts
  8. Key Facts & Data
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