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 upcoming 2025-26 marketing season. This decision is said to be aimed at guaranteeing remunerative prices to farmers and continues the government’s commitment to doubling farmers’ income.
Among the crops, nigerseed has received the highest absolute increase in MSP of Rs 820 per quintal, followed by ragi with Rs 596, cotton with Rs 589, and sesamum with Rs 579 per quintal.
The government says the increase is in line with the Union Budget 2018-19 announcement to fix MSPs at least 1.5 times the all-India weighted average cost of production. The expected returns over production cost are estimated to be highest in the case of bajra at 63%, followed closely by maize and tur at 59% each, and urad at 53%. For all other crops, the margin is expected to be around 50%.
MSPs reflect 50–63% margin above production cost.
Tur @ ₹8000/qtl (59%), Bajra @ ₹2775/qtl (63%), and Cotton @ ₹8110/qtl (50%) exemplify fair pricing.
This is not just policy — it’s a promise to India's farmers by Hon’ble PM Shri @narendramodi avaru. #MSP #ModiForFarmers… pic.twitter.com/SqNUvcIikP
— ಹೆಚ್.ಡಿ.ಕುಮಾರಸ್ವಾಮಿ | HD Kumaraswamy (@hd_kumaraswamy) May 28, 2025
The government has also been actively encouraging the cultivation of pulses, oilseeds, and nutri-cereals (Shree Anna) by offering higher MSPs, thereby promoting diversification away from traditional cereal crops. This policy shift has significantly benefited farmers growing a wider range of crops.
The impact of the government’s agricultural policies is evident in procurement and payment data over the last decade.
The Union Cabinet chaired by Hon'ble PM Shri @narendramodi ji has approved increase in the Minimum Support Price (MSP) for 14 Kharif crops for Marketing Season 2025-26.
The expected margin to farmers over their cost of production is at least 50% for all crops, and highest in the… pic.twitter.com/OC9PIh3noF
— G Kishan Reddy (@kishanreddybjp) May 28, 2025
Between 2014-15 and 2024-25, the procurement of paddy reached 7,608 lakh metric tonnes (LMT), compared to 4,590 LMT during 2004-05 to 2013-14. Similarly, the procurement of 14 Kharif crops rose from 4,679 LMT during the UPA era to 7,871 LMT under the NDA.
Financially, the support extended to farmers has grown manifold. The MSP amount paid to paddy farmers increased from Rs 4.44 lakh crore in the UPA period to Rs 14.16 lakh crore under the Modi government. Likewise, total MSP payments for all 14 Kharif crops surged from Rs 4.75 lakh crore to Rs 16.35 lakh crore over the same periods.
