Daijiworld Media Network - New Delhi

New Delhi, May 28: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved an increase in the Minimum Support Prices (MSP) for 14 kharif crops for the 2025-26 marketing season, aiming to ensure better returns for farmers, the government announced on Wednesday.

Among the key highlights, nigerseed saw the highest MSP hike of Rs 820 per quintal, followed by ragi (Rs 596), cotton (Rs 589), and sesamum (Rs 579). The MSP increase aligns with the government’s commitment—announced in the Union Budget 2018-19—to set MSPs at a minimum of 1.5 times the all-India weighted average cost of production.

Farmers cultivating bajra are expected to benefit the most, with returns of 63% over their cost of production. Maize and tur follow with an estimated 59% return, and urad at 53%. Other crops will yield margins of around 50%.

The cost of production used to calculate MSP includes hired labour, machinery use, seed, fertilisers, irrigation, interest on capital, and the imputed value of family labour.

To encourage diversification beyond traditional cereals, the government continues to promote pulses, oilseeds, and nutrient-rich grains (Shree Anna) by offering higher support prices.

The government also shared data showcasing its procurement performance. From 2014-15 to 2024-25, paddy procurement stood at 7,608 lakh metric tonnes (LMT), with ?14.16 lakh crore paid to farmers—compared to 4,590 LMT and Rs 4.44 lakh crore during 2004-05 to 2013-14. For all 14 kharif crops combined, procurement during 2014-25 reached 7,871 LMT, with Rs 16.35 lakh crore disbursed to farmers, up significantly from 4,679 LMT and Rs 4.75 lakh crore in the previous decade.