Key Points
- MSP increased for 14 Kharif crops for 2025-26; paddy MSP up by ₹69 to ₹2,369/quintal
- Nigerseed sees highest MSP hike: ₹820/quintal
- Farmers assured at least 50% margin over cost of production; bajra margin highest at 63%
- Modified Interest Subvention Scheme (MISS) for Kisan Credit Card loans extended for FY26
- Farmers can continue to avail short-term loans at effective 4% interest on prompt repayment
- Over 7.75 crore KCC account holders to benefit from continued affordable credit
New Delhi: In a significant move to support India’s farmers, the Union Cabinet led by Prime Minister Narendra Modi has approved a substantial hike in the Minimum Support Price (MSP) for 14 Kharif crops for the 2025-26 season, alongside extending the affordable Kisan Credit Card (KCC) loan scheme for another year.
MSP Hike: Key Details and Impact
- Paddy (common variety) MSP has been raised by ₹69 to ₹2,369 per quintal for the 2025-26 marketing season, while Grade A paddy will fetch ₹2,389 per quintal.
- Nigerseed received the highest absolute increase of ₹820 per quintal, followed by ragi (₹596), cotton (₹589), and sesamum (₹579).
- Maize MSP now stands at ₹2,400 per quintal.
- Other notable increases: Groundnut up by ₹480, sunflower seed by ₹441, soybean by ₹436, tur (arhar) by ₹450, urad by ₹400, and moong by ₹86 per quintal.
The government’s MSP policy ensures that farmers receive at least 50% more than their cost of production for all crops, with certain crops like bajra (63%), maize (59%), tur (59%), and urad (53%) offering even higher profit margins.
This hike, which will cost the exchequer about ₹2.07 lakh crore, is part of the government’s ongoing effort to double farmers’ incomes, encourage crop diversification, and ensure food and nutritional security.
Procurement Trends and Farmer Benefits
- Procurement of paddy and other Kharif crops has seen a sharp rise over the last decade, with MSP payments to farmers more than tripling compared to the previous decade.
- The government is also promoting pulses, oilseeds, and millets (Shree Anna) to reduce dependency on water-intensive crops and boost nutritional security.
Interest Subvention Scheme Extended: Cheaper Loans for Farmers
The Cabinet has also extended the Modified Interest Subvention Scheme (MISS) for 2025-26, ensuring that farmers can continue to access short-term loans at highly subsidized rates through KCC.
- Farmers can avail loans up to ₹3 lakh at a 7% interest rate, with 1.5% interest subvention provided to lending institutions.
- Those who repay loans on time get an additional 3% Prompt Repayment Incentive (PRI), reducing their effective interest rate to just 4%.
- For animal husbandry and fisheries, the interest benefit applies up to ₹2 lakh.
- Over 7.75 crore KCC account holders will benefit from continued affordable credit, supporting financial inclusion and rural productivity.
The scheme’s extension, with an allocation of ₹15,640 crore, is expected to help millions of small and marginal farmers across India by sustaining the flow of institutional credit and reducing their cost of borrowing.
With a record MSP hike for key Kharif crops and the continuation of low-interest KCC loans, the Modi government has reaffirmed its commitment to boosting farmer incomes, supporting crop diversification, and ensuring affordable credit for rural India. These measures are set to benefit crores of farmers and strengthen the agricultural sector’s resilience and growth.
