For pulses, tur/arhar MSP has been increased by ₹450 to ₹8,000 per quintal; moong MSP is at ₹8,768 per quintal, with an ₹86 increase over the previous year; and urad MSP has been hiked by ₹400 to ₹7,800 per quintal.

In oilseeds, the groundnut MSP has been set at ₹7,263 per quintal, a ₹480 increase over the previous year; the sunflower seed MSP has been increased by ₹441 to ₹7,721 per quintal; the soybean (yellow) MSP has been set at ₹5,328 per quintal, up ₹436 year-over-year; the sesamum MSP at ₹9,846 per quintal has been increased by ₹579; and the nigerseed MSP at ₹9,537 per quintal has been hiked by ₹820 over the previous year. Among commercial crops, the MSP for cotton (medium staple) has been increased by ₹589 to ₹7,710 per quintal, a 108% rise over 2013-14, while the cotton (long staple) MSP has been set at ₹8,110 per quintal with a ₹589 increase over the previous year.

Modified Interest Subvention Scheme to Continue

The Cabinet also approved the continuation of the interest subvention (IS) component under the Modified Interest Subvention Scheme (MISS) for the financial year 2025-26 and approved the required fund arrangements. MISS is a Central Sector Scheme aimed at ensuring the availability of short-term credit to farmers at an affordable interest rate through the Kisan Credit Card (KCC).

Under the scheme, farmers receive short-term loans of up to ₹3 lakh through Kisan Credit Cards (KCC) at a subsidised interest rate of 7%, with 1.5% interest subvention provided to eligible lending institutions. Additionally, farmers repaying loans promptly are eligible for an incentive of up to 3% as the Prompt Repayment Incentive (PRI), effectively reducing their interest rate on KCC loans to 4%. For loans taken exclusively for animal husbandry or fisheries, the interest benefit is applicable up to ₹2 lakh.

No changes have been proposed in the structure or other components of the scheme.

There are more than 7.75 crore KCC accounts in the country, and the continuation of this support is critical to sustaining the flow of institutional credit to agriculture. Notably, the institutional credit disbursement through KCC increased from ₹4.26 lakh crore in 2014 to ₹10.05 lakh crore by December 2024. The overall agricultural credit flow also rose from ₹7.3 lakh crore in FY 2013-14 to ₹25.49 lakh crore in FY 2023-24.

Cabinet Announcements

Cabinet approves higher kharif MSPs, extends farm loan subvention, and sanctions 4-lane Andhra highway