Big Relief for Farmers: MSP of 14 Kharif Crops Increased, Cheaper KCC Loans Announced

Key Highlights:

• MSP of 14 crops, including tur, urad, cotton, hiked.

• Nigerseed saw the highest hike of ₹820 per quintal.

• Farmers to get KCC loans up to ₹3 lakh at 4% interest.

• Interest rebate is also valid for fisheries, animal husbandry.

The Indian government has announced major decisions that will directly benefit crores of farmers nationwide. In a Union Cabinet meeting held under the leadership of Prime Minister Narendra Modi, two important decisions were taken: an increase in the Minimum Support Price (MSP) of 14 Kharif crops and continuation of the interest rebate scheme on Kisan Credit Card (KCC) loans for 2025-26.

These steps aim to improve farmer’s financial condition, boost income, and reduce farming costs, an important move towards building an Atmanirbhar Bharat (self-reliant India).

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MSP Hiked for Kharif Season 2025-26

The MSP is the minimum price at which the government buys crops from farmers, ensuring they do not face a loss even if market prices drop. This year, the MSP for 14 major Kharif crops, including paddy, pulses, and oilseeds, has been increased.

The increase will not only secure better prices for crops but also ensure a minimum 50% profit margin over production costs for farmers.

MSP for Paddy Raised by ₹69

For the upcoming Kharif season (2025–26), the MSP of paddy (common variety) has been increased from ₹2300 to ₹2369 per quintal, marking a ₹69 hike. Similarly, Grade A paddy has seen an increase of ₹69, now priced at ₹2389 per quintal.

This move is aligned with the government's goal of doubling farmers’ income, and it showcases the continued support for India’s agricultural backbone.

Complete List of MSP Hike for All 14 Crops

Here is a detailed comparison of the MSP hikes announced for Kharif crops for the year 2025–26:

Highest MSP Increase:

• Nigerseed saw the biggest hike — ₹820 per quintal.

• Crops like ragi, cotton, sunflower, groundnut, and sesame also saw significant price increases.

Also Read: Narsinghpur Hosts 3-Day Agri Fair with Subsidy on Modern Equipment

KCC Loans Now at Just 4% Interest

To support the financial needs of farmers, the Union Cabinet has also approved the continuation of the Modified Interest Subvention Scheme (MISS) for the year 2025-26. This will allow farmers to get loans under the Kisan Credit Card (KCC) scheme at a concessional interest rate of just 4% for short-term credit.

Key Points of the KCC Loan Scheme:

• Short-term crop loans up to ₹3 lakh at 7% base interest

• 1.5% interest subvention provided to lending institutions

• An additional 3% interest rebate on timely repayment by farmers (making the effective rate just 4%)

• For farmers in fisheries and animal husbandry, the interest rebate is valid for loans up to ₹2 lakh

This move will reduce the cost of borrowing for farmers and help them manage their farm expenses more efficiently.

About the Kisan Credit Card (KCC) Scheme

The KCC scheme was started during the tenure of former Prime Minister Atal Bihari Vajpayeeto provide timely and easy credit access to farmers. Over the years, it has become one of the most effective tools for fulfilling short-term agricultural needs like seeds, fertilizers, and pesticides.

With the interest subvention scheme, the government ensures that farming remains affordable and sustainable for small and marginal farmers.

Also Read: Viksit Krishi Sankalp Abhiyan 2025 to Launch from Puri on May 29; Shivraj Singh Chouhan to Lead Farmer Outreach Across 20 States

CMV360 Says

The increase in MSP and continuation of cheap credit under the KCC scheme reflect the government’s commitment to supporting the farmers of India. These decisions will not only boost the agricultural economy but also empower the farmers with better income and easier access to credit.

With a total MSP outlay of ₹2.07 lakh crore, this is a big step towards strengthening India’s agriculture sector and making it future-ready.

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