Government hikes MSP for kharif crops; farm groups express concern over trade deal impact
The Cabinet Committee on Economic Affairs announced an increase in the Minimum Support Price (MSP) for kharif crops for the 2026-27 season. The MSP for common paddy has been raised by ₹72 per quintal to ₹2,441, with A-grade paddy at ₹2,461 per quintal. Union Minister Ashwini Vaishnaw stated that the revised MSPs would ensure returns of about 50% over the cost of production. However, farmer organizations have criticized the new rates, arguing they do not adequately account for the potential "disastrous impact" of the India-U.S. trade deal and other free trade agreements on the agriculture sector.
Key Points
- The Cabinet Committee on Economic Affairs approved increased MSPs for kharif crops for the 2026-27 season.
- MSP for common paddy increased by ₹72 per quintal to ₹2,441.
- The government aims to ensure a 50% return over the cost of production with the revised MSPs.
- Farmer organizations are critical of the new rates, citing concerns about the impact of India-U.S. and other free trade agreements on agriculture.
Exam Facts
- MSP for common paddy increased to ₹2,441 per quintal for 2026-27.
- MSP for A-grade paddy varieties is ₹2,461 per quintal.
- Union Minister Ashwini Vaishnaw announced the MSP hike.
- The Cabinet Committee on Economic Affairs (CCEA) made the announcement.
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