{"id":33647,"date":"2025-05-31T11:44:16","date_gmt":"2025-05-31T06:14:16","guid":{"rendered":"https:\/\/edunovations.com\/currentaffairs\/?p=33647"},"modified":"2025-05-31T11:44:21","modified_gmt":"2025-05-31T06:14:21","slug":"kharif-crops-minimum-support-price-msp-hike-approved-for-14-kharif-crops-in-2025-26","status":"publish","type":"post","link":"https:\/\/edunovations.com\/currentaffairs\/national\/kharif-crops-minimum-support-price-msp-hike-approved-for-14-kharif-crops-in-2025-26\/","title":{"rendered":"Minimum Support Price (MSP) Hike for 14 Kharif Crops 2025\u201326: Government Boosts Farmer Income"},"content":{"rendered":"\n<p><strong>Cabinet Approves Hike in MSP for 14 Kharif Crops for 2025\u201326<\/strong><\/p>\n\n\n\n<p><strong>Introduction: Government&#8217;s Commitment to Farmers<\/strong><\/p>\n\n\n\n<p>On May 29, 2025, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved an increase in the Minimum Support Prices (MSP) for 14 Kharif crops for the 2025\u201326 marketing season. This decision aims to provide remunerative prices to farmers, ensuring fair compensation for their produce and promoting agricultural sustainability. The total financial outlay for this initiative is \u20b92.07 lakh crore.<\/p>\n\n\n\n<p><strong>Key Highlights of MSP Hike<\/strong><\/p>\n\n\n\n<p>The approved MSPs reflect the government&#8217;s commitment to enhancing farmers&#8217; income. The highest absolute increase in MSP over the previous year has been recommended for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Nigerseed<\/strong>: \u20b9820 increase per quintal (from \u20b98,717 to \u20b99,537)<\/li>\n\n\n\n<li><strong>Ragi<\/strong>: \u20b9596 increase per quintal (from \u20b94,290 to \u20b94,886)<\/li>\n\n\n\n<li><strong>Cotton (Medium Staple)<\/strong>: \u20b9589 increase per quintal (from \u20b97,121 to \u20b97,710)<\/li>\n\n\n\n<li><strong>Sesamum<\/strong>: \u20b9579 increase per quintal (from \u20b99,267 to \u20b99,846)<\/li>\n<\/ul>\n\n\n\n<p>These revisions will directly benefit millions of farmers engaged in cultivating these crops across India.<\/p>\n\n\n\n<p><strong>Profit Margins Over Cost of Production<\/strong><\/p>\n\n\n\n<p>The expected profit margins over the cost of production are particularly promising for the following crops:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Bajra<\/strong>: 63% margin<\/li>\n\n\n\n<li><strong>Maize<\/strong>: 59% margin<\/li>\n\n\n\n<li><strong>Tur (Pigeon Pea)<\/strong>: 59% margin<\/li>\n\n\n\n<li><strong>Urad (Black Gram)<\/strong>: 53% margin<\/li>\n\n\n\n<li>For all other Kharif crops, the margin is estimated to be 50%<\/li>\n<\/ul>\n\n\n\n<p>These figures reflect the government&#8217;s intent to not just raise support prices nominally, but also to substantially increase farmers&#8217; earnings in proportion to input costs.<\/p>\n\n\n\n<p><strong>Focus on Nutri-Cereals and \u201cShree Anna\u201d<\/strong><\/p>\n\n\n\n<p>In line with the national campaign to promote nutritional and climate-resilient crops, the government continues to offer higher MSPs for nutri-cereals, also known as \u201cShree Anna\u201d. This move is not only aimed at diversifying the agricultural basket but also improving soil health, climate adaptability, and nutritional outcomes for consumers.<\/p>\n\n\n\n<p><strong>MSP for Raw Jute Also Increased<\/strong><\/p>\n\n\n\n<p>The Cabinet also approved a 6% hike in MSP for raw jute, revising it to \u20b95,650 per quintal. This decision benefits jute growers primarily in West Bengal, Assam, and parts of Odisha and Bihar, who depend heavily on jute cultivation as their primary source of income.<\/p>\n\n\n\n<p><strong>Record Procurement: 2014\u20132025 vs 2004\u20132014<\/strong><\/p>\n\n\n\n<p>The government\u2019s statement also included a comparison of procurement data over the past two decades, demonstrating a significant jump in procurement levels and MSP payouts under the Modi government:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Paddy Procurement<\/strong>\n<ul class=\"wp-block-list\">\n<li>2014\u20132025: 7,608 Lakh Metric Tonnes (LMT)<\/li>\n\n\n\n<li>2004\u20132014: 4,590 LMT<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Procurement of 14 Kharif Crops<\/strong>\n<ul class=\"wp-block-list\">\n<li>2014\u20132025: 7,871 LMT<\/li>\n\n\n\n<li>2004\u20132014: 4,679 LMT<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>MSP Payment to Farmers<\/strong>\n<ul class=\"wp-block-list\">\n<li>Paddy (2014\u20132025): \u20b914.16 lakh crore<\/li>\n\n\n\n<li>Paddy (2004\u20132014): \u20b94.44 lakh crore<\/li>\n\n\n\n<li>14 Kharif Crops (2014\u20132025): \u20b916.35 lakh crore<\/li>\n\n\n\n<li>14 Kharif Crops (2004\u20132014): \u20b94.75 lakh crore<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\" id=\"MSP-hike-2025-for-Kharif-crops\"><img decoding=\"async\" width=\"213\" height=\"237\" src=\"https:\/\/edunovations.com\/currentaffairs\/wp-content\/uploads\/2025\/05\/image-1-11.jpg\" alt=\"MSP hike 2025 for Kharif crops\" class=\"wp-image-33675\" style=\"width:449px;height:auto\" title=\"MSP hike 2025 for Kharif crops\"\/><figcaption class=\"wp-element-caption\">MSP hike 2025 for Kharif crops<\/figcaption><\/figure>\n<\/div>\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/kharif-crops-minimum-support-price-msp-hike-approved-for-14-kharif-crops-in-2025-26\/#Why_This_News_Is_Important\" >Why This News Is Important<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/kharif-crops-minimum-support-price-msp-hike-approved-for-14-kharif-crops-in-2025-26\/#Historical_Context\" >Historical Context<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/kharif-crops-minimum-support-price-msp-hike-approved-for-14-kharif-crops-in-2025-26\/#Key_Takeaways_from_Cabinet_Approves_Hike_in_MSP_for_14_Kharif_Crops_for_2025%E2%80%9326\" >Key Takeaways from Cabinet Approves Hike in MSP for 14 Kharif Crops for 2025\u201326<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/kharif-crops-minimum-support-price-msp-hike-approved-for-14-kharif-crops-in-2025-26\/#FAQs_Frequently_Asked_Questions\" >FAQs: Frequently Asked Questions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edunovations.com\/currentaffairs\/national\/kharif-crops-minimum-support-price-msp-hike-approved-for-14-kharif-crops-in-2025-26\/#Some_Important_Current_Affairs_Links\" >Some Important Current Affairs Links<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_This_News_Is_Important\"><\/span><strong>Why This News Is Important<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Empowering Farmers with Fair Prices<\/strong><\/p>\n\n\n\n<p>The government&#8217;s decision to increase MSPs ensures that farmers receive remunerative prices for their produce, safeguarding their income against market fluctuations. This move aligns with the Union Budget 2018\u201319 announcement, which set a guideline of fixing MSPs at least 1.5 times the all-India weighted average cost of production.<\/p>\n\n\n\n<p><strong>Promoting Agricultural Sustainability<\/strong><\/p>\n\n\n\n<p>By offering higher MSPs for pulses, oilseeds, and nutri-cereals, the government encourages crop diversification. This not only enhances soil health and climate resilience but also addresses nutritional security for consumers.<\/p>\n\n\n\n<p><strong>Boosting Rural Economy<\/strong><\/p>\n\n\n\n<p>The increased MSPs and the record procurement levels contribute to the overall economic development of rural areas. Higher farmer incomes lead to increased purchasing power, stimulating local economies and improving living standards.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Historical_Context\"><\/span><strong>Historical Context<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Origin of MSP in India<\/strong><\/p>\n\n\n\n<p>The concept of Minimum Support Price (MSP) in India originated in response to food shortages in the 1960s, notably during the Bihar famine of 1966\u20131967. The Agricultural Prices Commission (APC) was established in 1965 to implement price policies like procurement at pre-decided prices and MSP.<\/p>\n\n\n\n<p><strong>Evolution to Commission for Agricultural Costs and Prices (CACP)<\/strong><\/p>\n\n\n\n<p>Over time, the APC evolved into the Commission for Agricultural Costs and Prices (CACP) in 1985, with broader terms of reference. The CACP recommends MSPs based on various factors, including the cost of production, demand and supply, and the impact on consumers.<\/p>\n\n\n\n<p><strong>Steps Involved in Fixing MSPs<\/strong><\/p>\n\n\n\n<p>The process of fixing MSPs involves several steps:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>CACP sends its recommendations to the Government of India.<\/li>\n\n\n\n<li>The reports are shared with state governments and concerned central ministries for comments.<\/li>\n\n\n\n<li>After reviewing all inputs, the Cabinet Committee on Economic Affairs (CCEA) takes the final decision on MSPs.<\/li>\n\n\n\n<li>Once approved, CACP publishes all its reports online, ensuring transparency and explaining the rationale behind its recommendations.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Takeaways_from_Cabinet_Approves_Hike_in_MSP_for_14_Kharif_Crops_for_2025%E2%80%9326\"><\/span><strong>Key Takeaways from Cabinet Approves Hike in MSP for 14 Kharif Crops for 2025\u201326<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>S.No<\/th><th>Key Takeaway<\/th><\/tr><\/thead><tbody><tr><td>1<\/td><td>The Cabinet approved an increase in MSP for 14 Kharif crops for the 2025\u201326 marketing season.<\/td><\/tr><tr><td>2<\/td><td>The highest absolute increase in MSP was recommended for nigerseed (\u20b9820 per quintal).<\/td><\/tr><tr><td>3<\/td><td>Expected profit margins over cost of production are highest for Bajra (63%) and Maize (59%).<\/td><\/tr><tr><td>4<\/td><td>The government&#8217;s focus on pulses, oilseeds, and nutri-cereals aims to promote crop diversification.<\/td><\/tr><tr><td>5<\/td><td>Record procurement levels and MSP payouts reflect the government&#8217;s commitment to farmer welfare.<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">MSP hike 2025 for Kharif crops<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs_Frequently_Asked_Questions\"><\/span>FAQs: Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>1. What is Minimum Support Price (MSP)?<\/strong><br>Minimum Support Price (MSP) is the price at which the government purchases crops from farmers, ensuring them a minimum profit for their harvest even if market prices fall below this level.<\/p>\n\n\n\n<p><strong>2. Which body recommends MSP in India?<\/strong><br>The Commission for Agricultural Costs and Prices (CACP) recommends MSP based on cost of production, demand-supply, and other factors, and the final MSP is approved by the Cabinet Committee on Economic Affairs (CCEA).<\/p>\n\n\n\n<p><strong>3. How many Kharif crops had their MSPs increased for the 2025\u201326 season?<\/strong><br>MSPs for 14 Kharif crops were approved for a hike in the 2025\u201326 marketing season.<\/p>\n\n\n\n<p><strong>4. Why is the government increasing MSPs?<\/strong><br>To ensure remunerative prices for farmers, promote crop diversification, enhance farmers\u2019 income, and support agricultural sustainability.<\/p>\n\n\n\n<p><strong>5. What is the significance of \u2018nutri-cereals\u2019 or \u201cShree Anna\u201d in this MSP hike?<\/strong><br>The government is encouraging the cultivation of nutri-cereals to promote nutritional security, improve soil health, and adapt to climate changes.<\/p>\n\n\n\n<p><strong>6. What was the financial outlay for the MSP hike in 2025\u201326?<\/strong><br>The total estimated financial outlay for the MSP hike is \u20b92.07 lakh crore.<\/p>\n\n\n\n<p><strong>7. Which crop received the highest absolute increase in MSP for 2025\u201326?<\/strong><br>Nigerseed received the highest absolute MSP increase of \u20b9820 per quintal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Some_Important_Current_Affairs_Links\"><\/span>Some Important Current Affairs Links<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--1\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/currentaffairs\/category\/national\/\" target=\"_blank\" rel=\"noreferrer noopener\">State Current Affairs<\/a><\/div>\n\n\n\n<div class=\"wp-block-button is-style-outline is-style-outline--2\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/edunovations.com\/currentaffairs\/category\/sports\/\" target=\"_blank\" rel=\"noreferrer noopener\">Sports 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This decision aims to&#8230;<\/p>\n","protected":false},"author":6,"featured_media":33677,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,138],"tags":[4079,6487,22726,22724,22725,22722,12411,5550,22723,3491,12602],"class_list":["post-33647","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","category-agriculture","tag-agricultural-policies","tag-agricultural-sustainability","tag-cacp","tag-ccea","tag-crop-diversification","tag-farmer-income","tag-government-support","tag-indian-agriculture","tag-kharif-crops","tag-minimum-support-price","tag-msp-hike"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts\/33647","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/comments?post=33647"}],"version-history":[{"count":2,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts\/33647\/revisions"}],"predecessor-version":[{"id":33676,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/posts\/33647\/revisions\/33676"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/media\/33677"}],"wp:attachment":[{"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/media?parent=33647"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/categories?post=33647"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/edunovations.com\/currentaffairs\/wp-json\/wp\/v2\/tags?post=33647"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}