Central Minister Ashwini Vaishnav announced big decisions taken at the cabinet meeting on Wednesday. In this important meeting chaired by Prime Minister Narendra Modi, the cabinet approved the minimum support price (MSP) of paddy for Rs 69 to Rs 2369 per quintal for the Kharif session of 2025-26. This simply means that in this season, farmers will be given at least Rs 2369 for 1 quintal of paddy. Let us tell you that earlier farmers were getting a minimum of Rs 2300 for 1 quintal paddy.
MSP approved for these 14 crops
The cabinet approved the minimum support price (MSP) for 14 kharif crops for the marketing session 2025-26. These 14 khari crops include paddy in addition to paddy, jowar, millet, ragi, maize, pigeonpea, moong, urad, cotton, peanuts, sunflower seeds, soybean (yellow), sesame and Ramatiil. For the Kharif session of 2025-26, the minimum support price of arhar has been increased by Rs 450 to Rs 8000 per quintal, Urad by Rs 400 to Rs 7800 per quintal and moong by Rs 86 to Rs 8768 per quintal. The total amount of MSP for these crops is Rs 2,07,000 crore. Prime Minister Narendra Modi has ensured that farmers get a margin of at least 50 percent above their cost.
Approval to continue interest exemption under MISS
In addition, the Union Cabinet today approved the continuation of the interest exemption (IS) component under the revised interest exemption scheme (MISS) for FY 2025-26 and approved the necessary funding system. The revised interest exemption scheme is a scheme of the Central Government, aimed at providing loans for short periods to farmers through Kisan Credit Card (KCC).
Farmers get loan at an interest rate of 4 percent
Under this scheme, farmers got short -term loans up to Rs 3 lakh at a concessional interest rate of 7 percent through Kisan Credit Card (KCC), in which 1.5 percent interest rebate was provided to the eligible institutions. In addition, farmers who repay the loan on time are eligible for up to 3 percent in the form of early repayment incentives (PRI), which makes their interest rate effectively 4 percent effectively on farmer credit card loan. Interest benefits on loans given for animal husbandry or fisheries are applicable up to Rs 2 lakh.
KCC started at the time of former Prime Minister Atal Bihari Vajpayee
The Kisan Credit Card (KCC) was started during the tenure of former Prime Minister Atal Bihari Vajpayee, making it quite easy for the farmers to get working capital. The interest assistance scheme has reduced a tremendous decrease in the cost of working capital of farmers. Under this scheme, loans up to Rs 2 lakh are made available to farmers at a concessional interest rate of just 4 percent.
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