The Cabinet Committee on Economic Affairs on Wednesday approved an increase in the Minimum Support Prices (MSP) for 14 Kharif crops for the 2025–26 marketing season.
Among the crops that saw the highest MSP hike, nigerseed received the biggest absolute increase of ₹820 per quintal, followed by ragi at ₹596 per quintal, cotton at ₹589 per quintal, and sesamum at ₹579 per quintal. For paddy, the staple crop, the MSP has been raised by ₹69 per quintal.
In the pulses category, the MSP of tur (arhar) has been raised by ₹450, moong by ₹86, and urad by ₹400 per quintal. Among oilseeds, the support prices for groundnut, sunflower seed, and soybean have been increased by ₹480, ₹441, and ₹436 respectively. The move is expected to support better price realization for farmers and reduce dependence on imports.
The increase is in line with the Union Budget 2018-19 announcement of fixing MSPs at a minimum of 1.5 times the all-India weighted average cost of production. According to the government, the expected margin for farmers over their cost of production is estimated to be highest in bajra at 63 per cent, followed by maize and tur at 59 per cent each, and urad at 53 per cent. For the remaining crops, the margin is estimated to be at least 50 per cent.
The government stated that in recent years it has consistently promoted the cultivation of pulses, oilseeds, and nutri-cereals, also known as Shree Anna, by offering comparatively higher MSPs. This is intended to not only improve farmers’ income but also to encourage nutritional security and crop diversification.
Data shared by the government highlights a significant increase in procurement and financial support to farmers over the last decade. From 2014-15 to 2024-25, procurement of paddy stood at 7,608 lakh metric tonnes (LMT), compared to 4,590 LMT during 2004-05 to 2013-14. For all 14 Kharif crops combined, procurement during the same period was 7,871 LMT, as against 4,679 LMT in the previous decade.
The MSP payout to paddy farmers surged to ₹14.16 lakh crore in the last decade, as compared to ₹4.44 lakh crore during 2004-05 to 2013-14. Similarly, the total MSP amount paid for all 14 Kharif crops was ₹16.35 lakh crore, a sharp rise from ₹4.75 lakh crore during the earlier period.
India follows a three-season cropping calendar: Kharif crops, which are monsoon-dependent, are sown in June-July and harvested in October-November; Rabi crops are sown post-monsoon in October-November and harvested from January onwards; and summer crops are grown between the Rabi and Kharif seasons.