The Cabinet Committee on Economic Affairs on Wednesday approved a higher Minimum Support Price (MSP) for 14 kharif crops. The higher rates are applicable to the marketing season 2025-26.This MSP enhancement for kharif Crops in Marketing Season 2025-26 aligns with the Union Budget 2018-19 declaration, which established MSP at minimum 1.5 times the All-India weighted average production cost. According to the CCEA release, the government has raised the MSP of kharif crops to ensure farmers receive fair compensation for their agricultural produce. Amongst all crops, nigerseed has received the largest absolute MSP increase of Rs 820 per quintal, with ragi, cotton, and sesamum following at Rs 596, Rs 589, and Rs 579 per quintal respectively.The projected returns for farmers beyond their production expenses are calculated to be most substantial for bajra at 63%, whilst maize, tur, and urad are expected to yield 59%, 59%, and 53% respectively. The remaining crops are anticipated to provide farmers with returns of 50% above their production costs.The government has been encouraging farmers to diversify their crop production beyond traditional cereals, focusing on pulses, oilseeds, and Nutri-cereals/Shree Anna by providing enhanced MSP for these alternatives, the release said.The procurement statistics for paddy show an increase, with 7,608 LMT recorded during 2014-15 to 2024-25, compared to 4,590 LMT during 2004-05 to 2013-14.For 14 kharif crops, the procurement volumes rose from 4,679 LMT in 2004-05 to 2013-14 to 7,871 LMT in 2014-15 to 2024-25.The MSP payments to paddy farmers increased, reaching Rs. 14.16 lakh crore in 2014-15 to 2024-25, up from Rs 4.44 lakh Crore in 2004-05 to 2013-14.The total MSP disbursement for farmers growing 14 kharif crops expanded from Rs 4.75 lakh crore in 2004-05 to 2013-14 to Rs 16.35 lakh crores during 2014-15 to 2024-25.
