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Informist, Wednesday, May 28, 2025

MUMBAI – The Cabinet Committee on Economic Affairs Wednesday approved a hike in the minimum support price of 14 key crops by 1.0-13.9% for the kharif marketing season 2025-26 (Oct-Sep). The total outgo on the minimum support price is estimated at 2.07 trillion, Information and Broadcasting Minister Ashwini Vaishnaw said. 

The minimum support price of paddy common and grade A varieties has been increased by 3.0% each to INR 2,369 per 100 kilograms and INR 2,389 per 100 kg, respectively. The increase in minimum support price for kharif crops is in line with the government decision to fix the price at a level of at least 1.5 times the all-India weighted average cost of production, an official release said.

The minimum support price of tur, the largest kharif pulse in terms of acreage and output, has been increased by 6.0% to INR 8,000 per 100 kg. The minimum support price for urad has been raised by 5.4% to INR 7,800 per 100 kg, while that of moong has been increased by just 1% to INR 8,768 per 100 kg.  

The minimum support price of nigerseed has been increased by 9.4% to INR 9,537 per 100 kg and sesame by 6.2% to INR 9,846 per 100 kg.

The highest increase in the minimum support price is for ragi at 13.9%. In absolute terms, the highest increase is for nigerseed at INR 820 per 100 kg, followed by ragi at 596 per 100 kg. The minimum support price for ragi has been increased to INR 4,886 per 100 kg.  

The minimum support price of maize has been hiked by 7.9% to INR 2,400 per 100 kg. 

The support price of cotton medium staple has been increased by 8.3% to INR 7,710 per 100 kg and cotton long staple by 7.8% to INR 8,110 per 100 kg.

Among oilseeds, the minimum support price of groundnut has been raised by 7.1% to INR 7,263 per 100 kg and that of soybean by 8.9% to INR 5,328 per 100 kg.

The expected profit margin for farmers over their cost of production is estimated to be highest in the case of bajra at 63%, followed by maize and tur at 59% each, and urad at 53%, the official release said. For the rest of the crops, the estimated profit margin over the cost of production for farmers is estimated to be 50%, it said.

Minimum support prices, or the rates at which the government buys crops from farmers in case the market prices fall, give security and direction to farmers in terms of realisation from their produce. They also help boost the production of a desired crop. Higher minimum support prices prompt farmers to add more area under these key kharif crops.

In recent years, the government has been promoting the cultivation of crops other than cereals, such as pulses and oilseeds and nutri-cereals, by offering a higher minimum support price for these crops, the release said.

The following table details the minimum support prices of key kharif crops, in rupees per 100 kg, for 2025-26, approved by the Cabinet Committee on Economic Affairs, compared with support prices of 2024-25, the year-on-year change in absolute and percentage terms, and the margin over cost of cultivation in percentage:

*Includes all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred on use of material inputs such as seeds, fertilisers, manures, irrigation charges, depreciation on implements and farm miscellaneous expenses, and imputed value of family labour.

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Reported by Shreya Shetty

Edited by Saji George Titus

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