Relief for farmers: Centre approves Rs 69 hike in paddy MSP, boosts support for pulses and oilseeds

The Indian government has increased the Minimum Support Price (MSP) for paddy by Rs 69 per quintal for the 2025-26 Kharif marketing season.

paddy field

Image Credit: Getty

In a key move aimed at supporting farmers ahead of the 2025-26 Kharif marketing season, the Narendra Modi-led Union Cabinet on Wednesday approved an increase of Rs 69 per quintal in the Minimum Support Price (MSP) for paddy. The revised MSP for common-grade paddy now stands at Rs 2,369 per quintal, while A-grade paddy will fetch Rs 2,389 per quintal.

The decision was taken during a Cabinet Committee on Economic Affairs (CCEA) meeting chaired by Prime Minister Narendra Modi. Briefing the media after the meeting, Union Minister Ashwini Vaishnaw said, “A major decision has been taken for farmers. Over the past 10-11 years, there has been a significant increase in MSPs for Kharif crops. Continuing this trend, the MSP for the upcoming season has been approved with an estimated outlay of Rs 2.07 lakh crore. For each crop, the formula of cost plus 50% margin has been followed.”

The Cabinet also approved the continuation of the Modified Interest Subvention Scheme (MISS) for the financial year 2025-26, with the existing 1.5% interest subvention, and sanctioned necessary fund arrangements.

Big boost for pulses, oilseeds

Among pulses, the MSP for tur (arhar) has been raised by Rs 450 to Rs 8,000 per quintal, urad by Rs 400 to Rs 7,800 per quintal, and moong by Rs 86 to Rs 8,768 per quintal.

In the oilseeds category, the highest increase has been recorded for nigerseed, with a hike of ₹820 per quintal. This is followed by ragi (Rs 596), cotton (Rs 589), and sesamum (Rs 579) per quintal.

The government stressed that the move aims to ensure remunerative prices for farmers and to encourage them to cultivate a wider variety of crops.

Farmers' margin over production cost

The expected profit margins for farmers over their cost of production are estimated to be highest for bajra (63%), followed by maize (59%), tur (59%), and urad (53%). For all other crops, the margin is projected to remain at or above the government-mandated 50%.