Centre raises MSP for 14 kharif crops: Paddy up ₹72, tur by ₹450

The Union Cabinet on Wednesday approved an increase in the Minimum Support Price for 14 kharif crops, with paddy getting a ₹72 per quintal hike and tur dal seeing a sharp ₹450 rise.

Paddy, Tur get a push

The government has fixed the new MSP for paddy at ₹2,441 per quintal. For tur (pigeon pea), the increase is significantly higher at ₹450, reflecting the government's focus on boosting pulses production.

Union Minister Ashwini Vaishnaw confirmed the decision after the Cabinet meeting. Officials said the revised rates will apply to the upcoming kharif sowing season, which typically begins with the onset of the southwest monsoon.

 What is MSP?

Minimum Support Price works as a safety net for farmers. When market prices fall below a certain level, the government steps in to buy crops at the guaranteed rate. This protects growers from sudden price crashes, especially during years of bumper production.

The Commission for Agricultural Costs and Prices recommends these rates before each crop season. The government largely accepts them, though political pressure often pushes MSPs higher than what the CACP originally suggests.

Other Cabinet decisions

Coal gasification push

The Cabinet approved a ₹37,500 crore scheme for surface coal and lignite gasification projects. The technology converts coal into gas, and the government wants to process 100 million tonnes by 2030. Officials believe this will cut down import dependence and strengthen energy security.

Nagpur Airport lease extended

The lease period for AAI-owned land at Dr Babasaheb Ambedkar International Airport has been extended. The land was previously leased to MIHAN India Limited, and the tenure will now continue beyond August 6, 2039.

Semi-high-speed rail project cleared

The Ahmedabad (Sarkhej)-Dholera double line project received the green signal. At ₹20,667 crore, this will be India's first semi-high-speed railway project developed entirely with indigenous technology. The railways ministry will implement it.

Impact on farmers

For paddy growers, the ₹72 increase is modest compared to previous years. But traders note that tur farmers will benefit substantially. Pulses have seen volatile prices in recent seasons, and a higher MSP may encourage more area under cultivation.

Sources familiar with the matter said the government is particularly focused on reducing import dependency for tur and other pulses. India still brings in significant quantities from Myanmar and African nations.

The sowing season is just weeks away. Whether these rates actually translate into higher farmer incomes will depend on procurement efficiency. Past seasons have seen complaints about delayed purchases and limited procurement centres in some states.