What Changes Are Coming with the MSP Hike for 14 Kharif Crops?
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Synopsis
In a significant move to support farmers, the Cabinet led by PM Narendra Modi has approved a hike in MSP for 14 kharif crops for the marketing season 2025-26. This enhancement aims to ensure that farmers receive fair remuneration for their produce, reflecting a commitment to agricultural sustainability and economic growth.
Key Takeaways
- The Cabinet has approved an MSP increase for 14 kharif crops for the 2025-26 season.
- Highest proposed MSP increases are for nigerseed, ragi, cotton, and sesamum.
- The MSP reflects the commitment to ensuring at least 1.5 times the production cost.
- Government efforts are aimed at promoting non-cereal crop cultivation.
- Significant increase in MSP payments to farmers over the last decade.
New Delhi, May 28 (NationPress) The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, has sanctioned an increase in the Minimum Support Prices (MSP) for 14 kharif crops for the marketing season 2025-26. This decision aims to provide fair prices to farmers for their harvest, as per an official statement released on Wednesday.
The most significant absolute rise in MSP compared to the previous year has been proposed for nigerseed (Rs 820 per quintal), trailed by ragi (Rs 596 per quintal), cotton (Rs 589 per quintal), and sesamum (Rs 579 per quintal).
This MSP enhancement for kharif crops for the 2025-26 marketing season aligns with the Union Budget 2018-19 commitment to set MSP at a level of at least 1.5 times the all-India weighted average cost of production. The anticipated profit margins for farmers over their production costs are expected to be highest for bajra (63 percent), followed by maize (59 percent), tur (59 percent), and urad (53 percent). For other crops, the profit margin is estimated at 50 percent, according to the statement.
The total production cost encompasses all paid-out expenses, including those related to hired labor, bullock or machine labor, land rent, and costs for seeds, fertilizers, irrigation, depreciation on farm equipment, working capital, and other miscellaneous expenses.
In recent years, the government has been advocating the cultivation of non-cereal crops, such as pulses, oilseeds, and nutri-cereals/Shree Anna, by providing enhanced MSP for these crops.
From 2014-15 to 2024-25, paddy procurement totaled 7,608 LMT, compared to 4,590 LMT from 2004-05 to 2013-14. During this same recent period, the MSP disbursed to paddy farmers amounted to Rs 14.16 lakh crore, in contrast to Rs 4.44 lakh crore disbursed between 2004-05 and 2013-14.
Furthermore, during the 2014-15 to 2024-25 period, procurement of 14 kharif crops reached 7,871 LMT, compared to 4,679 LMT from 2004-05 to 2013-14. The MSP paid to farmers for these crops during the recent decade was Rs 16.35 lakh crore, significantly higher than the Rs 4.75 lakh crore paid from 2004-05 to 2013-14.
Point of View
I believe this MSP hike demonstrates the government's ongoing commitment to supporting farmers. By ensuring fair pricing, we can promote agricultural sustainability and economic growth, fostering a more resilient agricultural sector in the long run.
NationPress
08/06/2025
Frequently Asked Questions
What is the Minimum Support Price?
The Minimum Support Price (MSP) is a price set by the government to purchase directly from the farmer. It is designed to ensure that farmers receive a minimum profit for their crops.
How does the MSP increase benefit farmers?
The increase in MSP ensures that farmers receive higher remuneration for their produce, which can improve their overall income and economic stability.
Which kharif crops are affected by the MSP hike?
The MSP hike applies to 14 kharif crops, including nigerseed, ragi, cotton, and sesamum, among others.
What is the expected margin for farmers?
The expected margin over the cost of production is estimated to be highest for bajra at 63%, followed by maize and tur at 59%, and urad at 53%.
How has MSP changed over the years?
Since 2014-15, there has been a significant increase in MSP payments to farmers, rising from Rs 4.75 lakh crore to Rs 16.35 lakh crore for 14 kharif crops.
