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Cabinet Clears Kharif MSP Hike and Coal Gasification Scheme

The package signals a push for crop diversification to reduce import dependence.

Overview

  • The Union Cabinet, which met Wednesday, approved higher minimum support prices for 14 kharif crops with a projected payout of ₹2.60 lakh crore and estimated procurement of 824.41 lakh metric tonnes.
  • The biggest increases go to sunflower seed by ₹622 per quintal to ₹8,343, cotton by ₹557, nigerseed by ₹515 and sesamum by ₹500, reflecting a tilt toward oilseeds.
  • The policy sets support prices at least 50% above the cost of production, and paddy rises by ₹72 per quintal to ₹2,441 for the common variety and ₹2,461 for Grade A.
  • The Cabinet also launched a ₹37,500 crore coal gasification incentive scheme and cleared a ₹20,665 crore semi high‑speed rail link between Sarkhej and Dholera along with upgrades for Nagpur airport.
  • Farmer unions said the hikes fall short of rising input costs, while industry voices urged stable import duties to make oilseed cultivation pay.