Cabinet approves hike in paddy MSP by ₹69 per quintal for Kharif season

The Cabinet has approved an MSP hike for paddy to ₹2,369/quintal for Kharif 2025-26, aiming to secure better returns for farmers and promote agricultural resilience

The Union Cabinet has approved a ₹69 per quintal increase in the minimum support price (MSP) for paddy for the upcoming Kharif 2025–26 marketing season, taking the MSP for paddy (common variety) to ₹2,369 per quintal.

 

The decision was taken by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi. The MSP for paddy (Grade A) has also been increased by ₹69 to ₹2,389 per quintal.

 

Other key MSP hikes

 

While the hike for paddy has been highlighted, the Cabinet also approved revised MSPs for 13 other Kharif crops. Nigerseed saw the highest absolute increase of ₹820 per quintal, followed by ragi (₹596), cotton (₹589), and sesamum (₹579).

 

The MSP hikes reflect the government’s focus on boosting farm incomes and encouraging crop diversification to ensure nutritional security.

 

Improved margins for farmers

 

In a statement, the CCEA said the expected margin to farmers over their cost of production is estimated to be highest in bajra (63 per cent), followed by maize (59 per cent), tur (59 per cent), and urad (53 per cent). For the remaining crops, the margin is estimated at 50 per cent.

 

Procurement trends

 

The government highlighted a significant increase in procurement over the past decade. Between 2014–15 and 2024–25, paddy procurement stood at 7,608 lakh metric tonnes (LMT) worth ₹14.16 trillion compared to 4,590 LMT and ₹4.44 trillion in the previous decade.

 

The MSP procurement of 14 Kharif crops has also risen to 7,871 LMT valued at ₹16.35 trillion during this period, up from 4,679 LMT and ₹4.75 trillion earlier.