The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved an increase in the Minimum Support Prices (MSP) for 14 Kharif crops for the marketing season of 2025-26. This decision is aimed at giving better prices to farmers for their produce.
The government has announced that the highest increase in MSP compared to last year has been given to nigerseed, which will now get Rs 820 more per quintal. This is followed by ragi with a rise of Rs 596 per quintal, cotton with Rs 589, and sesamum at Rs 579.
The MSP is the minimum price at which the government promises to buy crops from farmers, even if the market prices are lower. It is set every year for various crops to make sure farmers get a fair price.
The MSP for the 2025-26 season has been fixed in line with the Union Budget 2018-19 announcement, which promised that MSP would be at least 1.5 times the average cost of production across India. This means farmers will earn at least 50% more than what they spend on growing the crops.
According to government estimates, farmers growing bajra (pearl millet) will get the highest profit margin at 63% over their cost of production. This is followed by maize and tur (arhar dal) at 59% each, and urad (black gram) at 53%. For all other crops, the expected margin is around 50%.
In recent years, the government has also been encouraging farmers to grow crops other than cereals. These include pulses, oilseeds, and millets (also known as Nutri-cereals or Shree Anna). To support this, the government has been offering higher MSPs for these crops to help farmers move towards more diverse and nutritious farming.
The government also shared data on how procurement and MSP payments have changed over the years. Between 2014-15 and 2024-25, the government procured 7608 lakh metric tonnes (LMT) of paddy, while during 2004-05 to 2013-14, the procurement was 4590 LMT.
Similarly, the total procurement of all 14 Kharif crops was 7871 LMT during 2014-15 to 2024-25, compared to 4679 LMT during 2004-05 to 2013-14.
The amount paid to paddy-growing farmers during 2014-15 to 2024-25 was Rs 14.16 lakh crore. In the earlier period from 2004-05 to 2013-14, this amount was Rs 4.44 lakh crore.
For all 14 Kharif crops combined, the total MSP amount paid to farmers during 2014-15 to 2024-25 was Rs 16.35 lakh crore. In comparison, between 2004-05 and 2013-14, the amount was Rs 4.75 lakh crore.