Cabinet Approves Hike in MSP for Kharif Crops for 2025-26 Marketing Season
New Delhi, May 28, 2025 As part of the ongoing Azadi Ka Amrit Mahotsav celebrations, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, has approved the Minimum Support Prices (MSP) for 14 Kharif crops for the 2025-26 marketing season. The decision aims to ensure remunerative prices for farmers and encourage crop diversification.
The highest absolute increase in MSP has been granted to nigerseed with a hike of Rs. 820 per quintal, followed by ragi (Rs. 596), cotton (Rs. 589), and sesamum (Rs. 579).
Highlights of MSP Increase for 2025–26
Crop MSP (2025–26) Increase over 2024–25 (Rs) Margin over Cost (%) Nigerseed Rs. 9537 Rs. 820 50% Ragi Rs. 4886 Rs. 596 50% Cotton (Medium Staple) Rs. 7710 Rs. 589 50% Sesamum Rs. 9846 Rs. 579 50% Tur (Arhar) Rs. 8000 Rs. 450 59% Maize Rs. 2400 Rs. 175 59% Urad Rs. 7800 Rs. 400 53% Bajra Rs. 2775 Rs. 150 63% (Highest)
The MSP for common paddy has been increased to Rs. 2369 per quintal, while Grade A paddy will now fetch Rs. 2389. The increase aligns with the Union Budget 2018-19 announcement to set MSPs at a minimum of 1.5 times the All-India weighted average cost of production.
Encouraging Pulses, Oilseeds, and Nutri-Cereals
To promote the cultivation of pulses, oilseeds, and Nutri-cereals (Shree Anna), the government continues to offer higher MSPs for these crops. This policy not only enhances nutritional security but also boosts farmer incomes.
Procurement and Farmer Support: A Decade of Growth
Between 2014–15 and 2024–25:
- Paddy procurement stood at 7608 LMT, up from 4590 LMT in the 2004–05 to 2013–14 period.
- Procurement of all 14 Kharif crops totaled 7871 LMT, compared to 4679 LMT in the previous decade.
- MSP payments to paddy farmers totaled Rs. 14.16 lakh crore, significantly higher than Rs. 4.44 lakh crore during 2004–13.
- Overall MSP payouts for 14 Kharif crops reached Rs. 16.35 lakh crore, compared to Rs. 4.75 lakh crore in the preceding decade.
The increase in MSPs is expected to not only provide financial security to farmers but also support the government’s vision of sustainable and diversified agriculture.
