Breaking News Live: Modi Cabinet Approves Farm Interest Subvention Scheme, Hikes MSP For 14 Kharif Crops

The Cabinet Committee on Economic Affairs chaired by PM Modi has approved the increase in the Minimum Support Prices (MSP) for 14 Kharif Crops for Marketing Season 2025-26. 

The government has increased the MSP of Kharif Crops for Marketing Season 2025-26, to ensure remunerative prices to the growers for their produce. The highest absolute increase in MSP over the previous year has been recommended for nigerseed (Rs 820 per quintal) followed by Ragi (Rs 596 per quintal), Cotton (Rs 589 per quintal) and Sesamum (Rs 579 per quintal). 

The Modi cabinet cleared an interest subvention scheme for farmers, amounting to Rs 15,642 crore, which aims to ensure the availability of working capital via the Kisan Credit Card.

Under this scheme, farmers can access credit of up to Rs 3 lakh for crop cultivation, including horticulture, and up to Rs 2 lakh for allied agricultural activities. This credit is offered at a subvented interest rate of 7% per annum.

With a 1.5% interest subvention and an additional 3% incentive for prompt repayment, the effective interest rate for farmers becomes a highly beneficial 4%. Furthermore, loans up to Rs 2 lakh are provided collateral-free, and the scheme is facilitated through a single portal connecting 449 banks and financial institutions for ease of access for farmers.