Union Cabinet Hikes MSP for Kharif Crops for 2025-26 Season: Full Details Here

The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi has approved the increase in the Minimum Support Prices (MSP) for 14 Kharif crops. The higher rates are applicable to the marketing season 2025-26.

This MSP enhancement for kharif Crops in Marketing Season 2025-26 aligns with the Union Budget 2018-19 declaration, which established MSP at minimum 1.5 times the All-India weighted average production cost. 

According to the CCEA release, the government has raised the MSP of kharif crops to ensure farmers receive fair compensation for their agricultural produce. Amongst all crops, nigerseed has received the largest absolute MSP increase of Rs 820 per quintal, with ragi, cotton, and sesamum following at Rs 596, Rs 589, and Rs 579 per quintal respectively. 

Also Read: Govt approves MSP hike for Rabi crops in 2025-26; highest increase for Rapeseed & Mustard | Republic World

The projected returns for farmers beyond their production expenses are calculated to be most substantial for bajra at 63%, whilst maize, tur, and urad are expected to yield 59%, 59%, and 53% respectively. The remaining crops are anticipated to provide farmers with returns of 50% above their production costs. 

The government has been encouraging farmers to diversify their crop production beyond traditional cereals, focusing on pulses, oilseeds, and Nutri-cereals/Shree Anna by providing enhanced MSP for these alternatives, the release said. 

The procurement statistics for paddy show an increase, with 7,608 LMT recorded during 2014-15 to 2024-25, compared to 4,590 LMT during 2004-05 to 2013-14. 

“Government has increased the MSP of Kharif crops for Marketing Season 2025-26, to ensure remunerative prices to the growers for their produce, PIB said in a statement.

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

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).

In the recent years, Government has been promoting the cultivation of crops, other than cereals such as pulses and oilseeds, and Nutri-cereals/ Shree Anna, by offering a higher MSP for these crops.

During the period 2014-15 to 2024-25, the MSP amount paid to 14 Kharif crops growing famers was Rs. 16.35 Lakh Crores while during the period 2004-05 to 2013-14, MSP amount paid to farmers was Rs 4.75 lakh crore.