In a significant move for farmers, the centre has approved a hike in the Minimum Support Price (MSP) of paddy by Rs 69 per quintal, raising it to Rs 2,369 for the 2025-26 Kharif season. 

The Narendra Modi Cabinet has also given the green light for the continuation of the Modified Interest Subvention Scheme (MISS) for the financial year 2025–26, retaining the already existing 1.5 per cent interest subvention rate and approving the necessary funding arrangements.

The decision was made by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, according to a report by Moneycontrol.

Highlighting the development following a Cabinet meeting on Wednesday, Union Minister Ashwini Vaishnaw said, "A major decision has been taken for farmers. In last 10-11 years, massive increment in MSP has been done for Kharif crops. In this continuation, MSP has been approved by the Cabinet for the Kharif marketing season 2025-26. The total amount is estimated to be around Rs 2,07,000 Crores. For every crop, cost plus 50 percent has been taken into consideration."

MSP For Common, A Variety Of Paddy Increased 

For the upcoming kharif season of 2025-26 crop year (July-June), the MSP for common paddy has been raised to Rs 2,369 and A grade paddy raised to Rs 2,389, both marking an increase of Rs 69 per quintal.

Meanwhile, the price of tur pulse has been increased by Rs 450 to Rs 8,000 per quintal, the MSP of urad pulse has been raised by Rs 400 to RS 7,800 per quintal, and moong MSP increased by Rs 86 to Rs 8768 per quintal for the 2025-26 kharif marketing season.

The government has also claimed that in order to ensure remunerative prices to the farmers for their crops, the MSP of Kharif crops for Marketing Season 2025-26 has been increased.

According to an official statement, the largest year-on-year hike in Minimum Support Price (MSP) has been proposed for nigerseed, with an increase of Rs 820 per quintal. This is followed by ragi (Rs 596), cotton (Rs 589), and sesamum (Rs 579) per quintal.

The government also noted that farmers are expected to earn the highest returns over their cost of production from bajra, with an estimated margin of 63 per cent, followed by maize and tur at 59 per cent each, and urad at 53 per cent. For all other crops, the expected profit margin is estimated to be around 50 per cent.