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Cabinet approves Rs 2.07 lakh crore MSP hike for 14 kharif crops

The hikes fulfil the government’s pledge to set MSPs at least 1.5 times farmers’ cost of production.

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Overview

  • The Cabinet Committee on Economic Affairs sanctioned MSP increases for 14 kharif crops under a combined package worth Rs 2.07 lakh crore for the 2025-26 season.
  • MSP for common paddy was raised by Rs 69 (3%) to Rs 2,369 per quintal and for Grade A paddy to Rs 2,389 per quintal.
  • Pulses and oilseeds saw hikes of up to 9%, with the largest absolute per-quintal increases of Rs 820 for nigerseed, Rs 596 for ragi, Rs 589 for cotton and Rs 579 for sesamum.
  • Support prices guarantee farmers margins of at least 50% above production costs, with bajra margins projected at 63%.
  • The Modified Interest Subvention Scheme will continue in 2025-26 to ensure affordable short-term credit for farmers.