Cabinet Clears MSP Hike for Kharif Crops for 2025-26 Season

Cabinet Approves Higher MSP for 14 Kharif Crops for 2025-26

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved an increase in the Minimum Support Prices (MSP) for 14 Kharif crops for the 2025-26 marketing season.

The MSP hike aims to ensure remunerative prices for farmers. The highest increase has been announced for nigerseed (₹820 per quintal), followed by ragi (₹596), cotton (₹589), and sesamum (₹579 per quintal).

The MSP is calculated based on comprehensive production costs, including expenses on labour (human and animal/machine), leased land rent, seeds, fertilizers, irrigation, fuel, depreciation on equipment, interest on working capital, and the imputed value of family labour.

The revised MSP aligns with the Union Budget 2018-19 policy of fixing MSP at least 1.5 times the all-India weighted average cost of production. Farmers are expected to receive the highest margins in bajra (63%), followed by maize (59%), tur (59%), and urad (53%). For other crops, the margin is estimated at around 50%.

In recent years, the government has focused on promoting pulses, oilseeds, and nutri-cereals (Shree Anna) by offering higher MSPs to encourage diversification beyond traditional cereals.

Procurement data highlights a significant rise over the past decade. Between 2014-15 and 2024-25, paddy procurement stood at 7,608 lakh metric tonnes (LMT), compared to 4,590 LMT during 2004-05 to 2013-14. Similarly, procurement of 14 Kharif crops reached 7,871 LMT during 2014-15 to 2024-25, up from 4,679 LMT in the previous decade.

The total MSP payments to paddy farmers during 2014-15 to 2024-25 amounted to ₹14.16 lakh crore, significantly higher than ₹4.44 lakh crore paid between 2004-05 and 2013-14. Overall, MSP payments for 14 Kharif crops rose to ₹16.35 lakh crore during the same period, compared to ₹4.75 lakh crore in the earlier decade.

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