The Cabinet Committee on Economic Affairs, led by PM Modi, has approved an MSP hike for 14 kharif crops for the 2025–26 season.
The total financial outlay for this increase is nearly ₹2.07 lakh crore.
The MSP increase aims to ensure better prices for farmers and encourage cultivation.
Highest MSP hikes were for nigerseed (₹820 increase), followed by ragi, cotton, and sesamum.
This move aligns with the 2018-19 Budget promise of setting MSP at 1.5 times the cost of production.
Farmers’ profit margins are expected to be highest for bajra (63%), followed by maize, tur, and urad.
Other crops are estimated to give at least 50% profit over production cost.
The government is also promoting nutri-cereals (Shree Anna) by offering higher MSPs.
Between 2014-25, procurement of kharif crops increased significantly compared to 2004-14, showing stronger government support.
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