Cabinet raises paddy MSP by Rs 69 per quintal to Rs 2,369 for 2025-26 Kharif season

Paddy farmers (File image)

The Narendra Modi Cabinet has approved a hike in paddy Minimum Support Price (MSP) by Rs 69 per quintal, raising the MSP to Rs 2,369 for 2025-26 Kharif season.  The Cabinet also approved continuation of Modified Interest Subvention Scheme (MISS) for FY 2025-26 with existing 1.5 percent Interest Subvention (IS), and approved required fund arrangements.

The decision was taken by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.

Informing this after a Cabinet meeting on Wednesday, Union Minister Ashwini Vaishnaw said, "A major decision has been taken for farmers. In last 10-11 years, massive increment in MSP has been done for Kharif crops. In this continuation, MSP has been approved by the Cabinet for the Kharif marketing season 2025-26. The total amount is estimated to be around Rs 2,07,000 Crores. For every crop, cost plus 50 percent has been taken into consideration."

The support price for common and A grade varieties has been increased by Rs 69 per quintal to Rs 2,369 and Rs 2,389 per quintal, respectively, for the forthcoming kharif season of 2025-26 crop year (July-June).

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Among pulses, support price for tur has been raised by Rs 450 to Rs 8,000 per quintal, while that of urad MSP by Rs 400 to RS 7,800 per quintal and moong MSP by Rs 86 to Rs 8768 per quintal for 2025-26 kharif marketing season.

The government said that it has also increased the MSP of Kharif crops for Marketing Season 2025-26, to ensure remunerative prices to the farmers for their produce.

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As per an official release, the highest absolute increase in MSP over the previous year has been recommended for nigerseed (Rs 820 per quintal), followed by ragi (Rs 596 per quintal), cotton (Rs 589 per quintal) and sesamum (Rs 579 per quintal).

As per the government, the expected margin to farmers over their cost of production are estimated to be highest in case of bajra (63 percent), followed by maize (59 percent), tur (59 percent) and urad (53 percent). For the other crops, margin to farmers over their cost of production is estimated to be at 50 percent.