Cabinet approves MSP hike for paddy and other kharif crops for marketing season 2025-26

In a significant move aimed at strengthening farmer incomes and boosting agricultural confidence ahead of the kharif season, the Central Government has approved an increase in the Minimum Support Price (MSP) for 14 key kharif crops. 

Among the most notable changes is the Rs 69 per quintal hike in MSP for common variety paddy, the staple food grain for millions of Indian households, including Odisha. The MSP for paddy now stands at Rs 2,369 per quintal, up from Rs 2,300 last year. For Grade A paddy, the MSP has been raised to Rs 2,389 per quintal, offering a better return for higher-quality produce.

Government has increased the MSP of Kharif Crops for Marketing Season 2025-26, to ensure remunerative prices to the growers for their produce. The highest absolute increase in MSP over the previous year has been recommended for nigerseed (Rs.820 per quintal) followed by Ragi (Rs.596 per quintal), Cotton (Rs.589 per quintal) and Sesamum (Rs.579 per quintal).

The MSP for other coarse cereals and pulses has also seen considerable increases. Jowar has witnessed a hike of Rs 328 per quintal, while Bajra (pearl millet) is up by Rs 150,  Ragi, known for its nutritional value, has received a substantial MSP increase of Rs 596 per quintal. These changes are expected to encourage the cultivation of climate-resilient crops and support the government's objective of diversifying agriculture.

In the pulses category, the MSP of arhar dal has been raised by Rs 450 per quintal, and moong dal by Rs 86. These revisions are expected to provide better price assurance to farmers and help curb dependence on imports.

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 the All-India weighted average cost of production.

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

Experts believe the revised MSPs will not only benefit farmers financially but also act as a policy signal for encouraging the sowing of high-nutrient and drought-resistant crops, essential for long-term climate resilience and food diversification.

Farmers’ associations and rural economists have largely welcomed the announcement, though some have urged the government to ensure timely procurement and payment, without which the MSP benefits may not fully reach grassroots cultivators.