The updated MSPs are designed to guarantee fair farmer incomes, offering profit margins of up to 63 per cent above production costs. The initiative also encourages the farming of pulses, oilseeds, and nutrient-rich grains such as Shree Anna
The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, has approved a hike in Minimum Support Prices (MSP) for 14 Kharif crops for the 2025–26 season. This decision aligns with the 2018–19 Union Budget’s commitment to set MSPs at least 1.5 times the all-India average production cost, ensuring fair and profitable returns for farmers.
Among the crops, nigerseed saw the highest MSP hike of Rs 820 per quintal, followed by ragi (Rs 596), cotton (Rs 589), and sesamum (Rs 579). These revisions are part of a broader strategy to promote the cultivation of nutritious and high-value crops like pulses, oilseeds, and Shree Anna (nutri-cereals).
The highest projected profit margin is for bajra (63 per cent), followed by maize and tur (59 per cent), and urad (53 per cent). All other crops will have at least a 50 per cent margin. For instance, the MSP for common paddy was increased from Rs 2,300 to Rs 2,369 per quintal, offering a remarkable 81 per cent margin over its production cost of Rs 1,310. MSPs for maize and tur have been fixed at Rs 2,400 and Rs 8,000 per quintal, respectively.
This policy is supported by strong procurement trends. Between 2014–15 and 2024–25, paddy procurement reached 7,608 LMT, compared to 4,590 LMT during 2004–05 to 2013–14. Total procurement of all 14 Kharif crops rose to 7,871 LMT, up from 4,679 LMT in the previous decade.
MSP payments have seen a sharp rise as well—paddy farmers received Rs 14.16 lakh crore in the last ten years, compared to Rs 4.44 lakh crore in the decade prior. Overall MSP disbursals for Kharif crops increased to Rs 16.35 lakh crore, from Rs 4.75 lakh crore earlier.
