Minimal 3% Hike in Support Price for Paddy
Cabinet Greenlights Modest 3% Increase in Paddy MSP for 2025-26 Kharif Season
The Cabinet has approved a slight 3% hike in the minimum support price (MSP) of paddy to Rs 2,369 per quintal for the upcoming 2025-26 kharif season. This marks the lowest increase in five years. In contrast, soybean, cotton, and pulses will see greater hikes to promote crop diversification. The government is aiming for a total payout of Rs 2.07 lakh crore. With the forecast of a favorable monsoon, foodgrain production is expected to reach 354.64 million tonnes.
Union Agriculture Minister Shivraj Singh Chouhan recently stated that the country is on track to achieve a 3.5% growth rate in the farm sector during 2025-26. The increase in MSP for major kharif crops for the next season signals a strategic shift towards encouraging farmers to explore more lucrative crops like pulses and oilseeds, particularly in regions like Punjab and Haryana.
Efforts to Boost Agricultural Sector Growth
Food grain output is projected to hit a record high in the upcoming kharif season, supported by above-normal monsoon predictions. Importantly, the MSP hike for tur in the 2025-26 season is set at Rs 8,000 per quintal, reflecting a 6% rise from the previous year. However, market prices currently remain below the MSP level.
Other key changes in MSP include a marginal increase for moong and a substantial hike for urad to promote pulses cultivation. The government’s focus on elevating MSPs for pulses and oilseeds aims to drive agricultural growth and enhance farmers’ income levels.
Steps to Strengthen Agricultural Sector
The government’s policy of MSPs, which guarantees farmers a minimum of 50% profit over production costs, has been instrumental in supporting crop diversification and boosting rural income. Increased MSPs for key crops like soybean and cotton are poised to have a positive impact on the agricultural landscape.
Overall, the government’s efforts to enhance MSPs and procurement operations are crucial for driving agricultural growth and ensuring stability in the sector. By promoting crop diversification and supporting farmers in exploring new avenues, the agricultural sector is poised for growth and advancement in the upcoming years.
