Indian Government Hikes MSP for 14 Kharif Crops for 2025-26

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, has approved an increase in the Minimum Support Prices (MSP) for 14 Kharif crops for the 2025–26 marketing season.

This step is taken to ensure that farmers get fair and remunerative prices for their crops. The increase in MSP is also in line with the government’s promise to fix MSP at least 1.5 times the average cost of production, as announced in the Union Budget 2018-19.

What is MSP

Minimum Support Price (MSP) is the minimum price at which the government guarantees to purchase crops from farmers to protect them against any sharp fall in market prices.

This price acts as a safety net, ensuring that farmers do not have to sell their produce below cost, even if market prices fall. This ensures that farmers don’t face losses and helps in income security.

Key Points About MSP

• Announced by: Government of India (based on CACP recommendations)
• For whom: Primarily for farmers
• Crops covered: Over 20+ crops, including wheat, rice (paddy), pulses, oilseeds, cotton, maize, etc.
• When announced: Twice a year, for Kharif and Rabi crops.

Highlights of the MSP Hike 2025–26

• Nigerseed got the highest increase in MSP by ₹820 per quintal.
• Followed by Ragi (₹596), Cotton (₹589), and Sesamum (₹579).
• The highest margin over the cost of production is for bajra (63%), followed by maize (59%), tur/arhar (59%), and urad (53%).

New MSP Rates for 2025–26 (in ₹ per quintal)

S.No	Crop	MSP 2024-25	MSP 2025-26	Increase (₹)	Margin Over Cost (%)
Cereals
1.	Paddy (Common)	2,300	2,369	69	50%
2.	Paddy (Grade A)	2,320	2,389	69	50%
3.	Jowar (Hybrid)	3,371	3,699	328	50%
4.	Jowar (Maldandi)	3,421	3,749	328	50%
5.	Bajra	2,625	2,775	150	63%
6.	Ragi	4,290	4,886	596	50%
7.	Maize	2,225	2,400	175	59%
Pulses
8.	Tur (Arhar)	7,550	8,000	450	59%
9.	Moong	8,682	8,768	86	50%
10.	Urad	7,400	7,800	400	53%
Oilseeds
11.	Groundnut	6,783	7,263	480	50%
12.	Sunflower Seed	7,280	7,721	441	50%
13.	Soybean (Yellow)	4,892	5,328	436	50%
14.	Sesamum	9,267	9,846	579	50%
15.	Nigerseed	8,717	9,537	820	50%
Commercial Crops
16.	Cotton (Medium)	7,121	7,710	589	50%
17.	Cotton (Long Staple)	7,521	8,110	589	50%

Cost of Production Considered

The cost used for calculating MSP includes:

• Hired labour (human, animal, machine)
  
• Cost of seeds, fertilizers, and irrigation
  
• Rent for leased land
  
• Value of family labour
  
• Depreciation of farm equipment
  
• Fuel, electricity, and interest on working capital

Government’s Efforts Over the Years

The government’s efforts to support farmers have shown strong results:

• Paddy Procurement
  
  • 2014-25: 7,608 Lakh Metric Tonnes (LMT)
    
  • 2004-14: 4,590 LMT
    
• Total Kharif Crop Procurement
  
  • 2014-25: 7,871 LMT
    
  • 2004-14: 4,679 LMT
    
• MSP Payment to Farmers (All 14 Crops)
  
  • 2014-25: ₹16.35 Lakh Crore
  • 2004-14: ₹4.75 Lakh Crore
    

Focus on Diversification

In recent years, the government is promoting diversification towards:

• Pulses
  
• Oilseeds
  
• Nutri-cereals (Shree Anna)
  

Higher MSPs are being offered for these to encourage better nutrition and crop sustainability.

Why This Matters for Farmers

• Farmers are assured a fair price even if market prices fall.
• Higher MSP on pulses and oilseeds encourages farmers to grow more of these crops.
• Boosts the government’s mission of promoting “Shree Anna” (nutri-cereals) and achieving nutritional and economic security.

The increase in MSP for Kharif crops for 2025-26 is a welcome move for farmers, ensuring not only better income but also encouraging the diversification of crops. It reflects the government’s commitment to supporting agriculture and increasing farmer income.

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