NEW DELHI: The Union Cabinet on Wednesday approved a hike in the Minimum Support Price (MSP) for the 2025-26 Kharif season and extended the interest subvention scheme for farmers. It also approved two multi-tracking railway projects in Maharashtra and Madhya Pradesh, as well as a four-lane highway project in Andhra Pradesh. The Cabinet approved a hike in paddy MSP by three percent or Rs 69 per quintal to Rs 2,369 for the 2025-26 Kharif season and up to nine percent rise in rates of pulses and oilseeds, according to Union Minister Ashwini Vaishnaw. The cost to the exchequer of the MSP decision is Rs 2,07,000 crore, and continuation of the subvention scheme will cost Rs 15,642 crore.The announcement comes amid the southwest monsoon reaching earlier than usual, giving a boost to the sowing of kharif crops, which contribute over 50 per cent of India’s total annual foodgrain production.Under the Modified Interest Subvention Scheme (MISS) for 2025-26, farmers will continue to receive short-term credit at an affordable rate through the Kisan Credit Card (KCC). The continuation of the scheme will cost exchequer Rs 15,640 crore, the Minister said.Under MISS, farmers get short-term loans of up to Rs 3 lakh through KCC at a subsidised interest rate of 7 percent, with 1.5 percent interest subvention provided to eligible lending institutions.Additionally, farmers who repay loans promptly are eligible for an incentive of up to 3 percent as the Prompt Repayment Incentive (PRI), effectively reducing their interest rate on KCC loans to 4 percent.
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