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        Case ID :

        Cabinet approves Minimum Support Prices (MSP) for Kharif Crops for Marketing Season 2025-26

        May 28, 2025

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        The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi has approved the increase in the Minimum Support Prices (MSP) for 14 Kharif Crops for Marketing Season 2025-26. 

        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). 

        Minimum Support Prices for all Kharif crops for Marketing Season 2025-26

        (Rs. per quintal)

        S.No.

          Crops

        MSP 2025-26

        Cost* KMS 2025-26

        Margin over cost (%)

        MSP

        MSP Increase in 2025-26

         

          Cereals

        2024-25

        2013-14

        over
        2024-25

        over 2013-14

         

         

         

         

         

           

         

        1.

        Paddy

        Common

        2369

        1579

        50

        2300

        1310

        69

        1059

        (81%)

         

        Grade A^

        2389

        -

        -

        2320

        1345

        69

        1044

        (78%)

        2.

        Jowar

        Hybrid

        3699

        2466

        50

        3371

        1500

        328

        2199

        (147%)

         

        Maldandi^

        3749

        -

        -

        3421

        1520

        328

         

        2299

        (147%)

        3.

        Bajra

        2775

        1703

        63

        2625

        1250

        150

        1525

        (122%)

        4.

        Ragi

        4886

        3257

        50

        4290

        1500

        596

        3386

        (226%)

        5.

        Maize

        2400

        1508

        59

        2225

        1310

        175

        1090

        (83%)

         

        Pulses

         

         

         

         

         

         

         

        6.

        Tur /Arhar

        8000

        5038

        59

        7550

        4300

        450

        3700

        (86%)

        7.

        Moong

        8768

        5845

        50

        8682

        4500

        86

        4268

        (95%)

         

        Crops

        MSP 2025-26

        Cost* KMS 2025-26

        Margin over cost (%)

        MSP

        MSP Increase in 2025-26

         

         

         

         

         

        2024-25

        2013-14

        over 2024-25

        over 2013-14

         

        8.

        Urad

        7800

        5114

        53

        7400

        4300

        400

         

        3500
        (81%)

         

        Oilseeds

         

         

         

           

         

        9.

        Groundnut

        7263

        4842

        50

        6783

        4000

         

        480

        3263

        (82%)

         

        10.

        Sunflower Seed

        7721

        5147

        50

        7280

        3700

        441

        4021

        (109%)

        11.

        Soybean (Yellow)

        5328

        3552

        50

        4892

        2560

        436

        2768

        (108%)

        12.

        Sesamum

        9846

        6564

        50

        9267

        4500

        579

        5346

        (119%)

         

        13.

        Nigerseed

        9537

        6358

        50

        8717

        3500

        820

        6037

        (172%)

         

        Commercial

         

         

         

         

         

         

         

        14.

        Cotton

        (Medium Staple)

        7710

        5140

        50

        7121

        3700

         

        589

        4010

        (108%)

         

        (Long Staple)^

        8110

        -

        -

        7521

        4000

        589

        4110

        (103%)

        *Refers to cost which includes all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilizers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc., miscellaneous expenses and imputed value of family labour.

        ^ Cost data are not separately compiled for Paddy (Grade A), Jowar (Maldandi) and Cotton (Long staple)

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

        In the recent years, 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. 

        During the period 2014-15 to 2024-25, procurement of paddy was 7608 LMT while during the period 2004-05 to 2013-14, procurement of paddy was 4590 LMT.

        During the period 2014-15 to 2024-25, procurement of 14 Kharif crops was 7871 LMT while during the period 2004-05 to 2013-14, procurement was 4679 LMT.

        During the period 2014-15 to 2024-25, MSP amount paid to Paddy growing famers was Rs. 14.16 Lakh  Crore while during the period 2004-05 to 2013-14, amount paid to farmers was Rs. 4.44 Lakh Crore. 

        During the period 2014-15 to 2024-25, the MSP amount paid to 14 Kharif crops growing famers was Rs. 16.35 Lakh Crores while during the period 2004-05 to 2013-14, MSP amount paid to farmers was Rs. 4.75 Lakh Crore.

        Minimum Support Price increases for kharif crops raise guaranteed farmer margins, aligning MSP with cost plus policy. The Cabinet approved increased Minimum Support Prices for fourteen Kharif crops for marketing season 2025-26, specifying MSPs, underlying cost of production components and year on year increases. The policy implements an MSP benchmark tied to at least one and a half times the all India weighted average cost of production to secure targeted margins over cost, highlights crops with the largest MSP rises, and summarizes recent procurement volumes and MSP disbursements.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Minimum Support Price increases for kharif crops raise guaranteed farmer margins, aligning MSP with cost plus policy.

                                The Cabinet approved increased Minimum Support Prices for fourteen Kharif crops for marketing season 2025-26, specifying MSPs, underlying cost of production components and year on year increases. The policy implements an MSP benchmark tied to at least one and a half times the all India weighted average cost of production to secure targeted margins over cost, highlights crops with the largest MSP rises, and summarizes recent procurement volumes and MSP disbursements.





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                                ActsIncome Tax
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