Modi Government Hikes MSP for Kharif Crops; Approves Coal Gasification Scheme

New Delhi: The Union Cabinet has approved an outlay of ₹2.60 lakh crore for the Minimum Support Price (MSP) of Kharif crops for the 2026-27 season, with the aim of providing robust income support to farmers. The MSP has been determined based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). The Cabinet approved an increase in the Minimum Support Price (MSP) for 14 Kharif crops for the 2026-27 season.

The government has raised the MSP for Kharif crops for the 2026-27 marketing season to ensure remunerative prices for farmers’ produce. On Wednesday, the government hiked the Minimum Support Price (MSP) for paddy by ₹72 to ₹2,441 per quintal for the 2026-27 Kharif marketing season. Compared to the previous year, the highest increase in MSP has been recommended for sunflower seeds (₹622 per quintal), followed by cotton (₹557 per quintal), niger seeds (₹515 per quintal), and sesame (₹500 per quintal).

According to official estimates, this decision is expected to result in payments of approximately ₹2.60 lakh crore to farmers, while the annual procurement is projected to stand at 824.41 lakh metric tonnes (LMT). The government also noted that the MSP is at least 50% higher than the cost of production, thereby continuing the policy initiated in 2019, which aims to ensure better returns for farmers.

According to the news agency PTI, a decision in this regard was taken during a meeting of the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi. For the 2026-27 Kharif Marketing Season (September-October), the support price for ‘Common’ and ‘A-Grade’ varieties has been increased by ₹72 per quintal, raising them to ₹2,441 and ₹2,461 per quintal, respectively.

Coal Gasification Scheme Worth ₹37,500 Crore Approved
The Cabinet has approved a coal gasification scheme worth ₹37,500 crore. The objective of this scheme is to reduce India’s dependence on imported natural gas, methanol, and ammonia, while simultaneously utilizing domestic coal reserves in a cleaner manner. The scheme aims to achieve a coal gasification capacity of 100 million tonnes by 2030 and will provide financial incentives to projects in both the public and private sectors.