Centre’s food subsidy bill may rise to ₹2.5 trn in FY27

AMID HIGHER MSP, ROBUST PROCUREMENT

- SANJEEB MUKHERJEE

India’s food subsidy bill for 2026-27 (FY27) is likely to touch ₹2.5 trillion, up from the Budget estimate of ₹2.28 trillion due to higher minimum support price (MSP) for crops and robust procurement, a senior official hinted on Wednesday.

The government, however, is putting in place a more stringent framework to ensure fiscal discipline, they said.

“Whenever MSP increases, subsidy expenditure also rises. We are trying to put in place a more stringent framework to ensure fiscal discipline,” the official said.

The official was speaking at a panel discussion during a book launch event.