Cabinet Approves Hike in Minimum Support Prices (MSP) for Kharif Crops for Marketing Season 2025-26
Delhi: The Cabinet Committee on Economic Affairs (CCEA), chaired by the Hon’ble Prime Minister Shri Narendra Modi, has approved the increase in the Minimum Support Prices (MSP) for 14 Kharif crops for the Marketing Season 2025-26. This major step is aimed at ensuring remunerative prices for farmers and strengthening the agriculture sector, particularly in the light of the government’s ongoing commitment to doubling farmers’ income.
The revised MSPs are part of the government’s continued policy to fix support prices at least 1.5 times the all-India weighted average cost of production, as announced in the Union Budget 2018-19. This ensures a 50% or more margin over production costs for most crops.
The highest absolute increase in MSP has been granted to nigerseed, with a hike of ₹820 per quintal over the previous year. This is followed by ragi (₹596), cotton (₹589), and sesamum (₹579). These increases are not only indicative of the government’s support for oilseeds and nutri-cereals but also align with the nutritional and economic goals under the umbrella of sustainable agriculture.
In terms of percentage margin over cost of production, bajra leads with a 63% margin, followed by maize and tur/arhar with 59%, and urad with 53%. The remaining crops provide a margin of at least 50% over the cost of production.
In recent years, the Union Government has actively promoted diversification away from traditional cereals, focusing on the cultivation of pulses, oilseeds, and nutritious grains (also known as Shree Anna). By offering higher MSPs for these crops, the government aims to enhance nutritional security and make agriculture more resilient and profitable.
Historical procurement data shows a significant increase under the current government. Between 2014-15 and 2024-25, the procurement of paddy stood at 7,608 lakh metric tonnes (LMT), compared to 4,590 LMT during 2004-05 to 2013-14. The procurement of all 14 Kharif crops during 2014-25 reached 7,871 LMT, a substantial rise from 4,679 LMT during the preceding decade.
In financial terms, ₹14.16 lakh crore was paid to paddy-growing farmers between 2014-15 and 2024-25, compared to ₹4.44 lakh crore during 2004-05 to 2013-14. Overall, MSP payments for all 14 Kharif crops amounted to ₹16.35 lakh crore under the present government, significantly higher than the ₹4.75 lakh crore paid during the earlier period.
This policy shift reflects the government’s broader vision to boost farmer welfare, improve food security, and sustain agricultural growth as part of the Azadi Ka Amrit Mahotsav celebrations.
