The Cabinet Committee on Economic Affairs on Wednesday approved Rs 69 per quintal increase in the minimum support price for paddy for the upcoming Kharif 2025–26 marketing season, taking the MSP for paddy (common variety) to Rs 2,369 per quintal and (grade A variety) to Rs 2389 per quintal.

The Cabinet panel also approved revised MSPs for 13 other Kharif crops, of which Nigerseed saw the highest absolute increase of Rs 820 per quintal, followed by Ragi of Rs 596 per quintal, cotton of Rs 589 per quintal, Sesamum of Rs 579 per quintal, Tur of Rs 450 per quintal, Urad of Rs 400 per quintal and Jowar (both hybrid and maldandi) of Rs 328 per quintal.

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

In a statement, the government 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.

“The increase in MSP for Kharif Crops for Marketing Season 2025-26 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times of the All-India weighted average cost of production,” the government said in a statement

The expected margin to farmers over their cost of production is estimated to be highest in case of bajra (63%) followed by maize (59%), tur (59%) and urad (53%). For the rest of the crops, margin to farmers over their cost of production is estimated to be at 50%.

“In the recent years, the government has been promoting the cultivation of crops, other than cereals such as pulses and oilseeds, and Nutri-cereals/ Shree Anna, by offering a higher MSP for these crops,” the government said.

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 worth Rs 14.16 trillion compared to 4,590 LMT and Rs 4.44 trillion in the previous decade.

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