Cabinet Approves MSP Hike for Kharif Crops 2026-27 along with a ₹37,500 crore coal gasification scheme and India’s first semi-high-speed Namo Bharat rail corridor project in Gujarat.
Cabinet Approves MSP Hike for Kharif Crops 2026-27
In a major decision aimed at strengthening the agriculture sector and boosting infrastructure development, the Union Cabinet on Wednesday approved an increase in the Minimum Support Prices (MSP) for 14 Kharif crops for the 2026–27 marketing season. The Cabinet also cleared a large-scale coal gasification scheme and India’s first semi-high-speed broad-gauge rail corridor under the Namo Bharat framework.
Addressing the media after the Cabinet meeting, Union Information and Broadcasting Minister Ashwini Vaishnaw said the MSP hike has been designed to ensure remunerative prices for farmers and provide greater financial security during the upcoming Kharif season.
MSP Hike to Benefit Farmers
According to the government, the estimated payout to farmers during the Kharif season is expected to touch nearly ₹2.6 lakh crore. The government also plans to procure more than 824 lakh metric tonnes of crops.
The highest MSP increase has been announced for sunflower seed, which received a hike of ₹622 per quintal. Cotton farmers will receive an increase of ₹557 per quintal, while sesamum has been given a hike of ₹500 per quintal.
Under the revised MSP structure:
- Grade A Paddy MSP has been fixed at ₹2,461 per quintal
- Jowar (Hybrid) MSP has been increased to ₹4,023 per quintal
- Bajra MSP has been fixed at ₹2,900 per quintal
- Tur (Arhar) MSP has been set at ₹8,450 per quintal
The government stated that the revised MSP rates are aimed at encouraging crop diversification and ensuring better returns for cultivators across the country.
₹37,500 Crore Coal Gasification Scheme Approved
The Union Cabinet also approved a new scheme to promote surface coal and lignite gasification projects with a total outlay of ₹37,500 crore.
Officials said coal gasification technology converts coal and lignite into synthesis gas, commonly known as syngas, which can be used in power generation, chemical production, and fertilizer manufacturing.
The Centre believes the initiative will help reduce dependence on imports and support India’s long-term energy security goals by diversifying industrial feedstock sources.
India’s First Semi-High-Speed Broad-Gauge Corridor Cleared
In another significant infrastructure push, the Cabinet approved India’s first semi-high-speed rail corridor on broad gauge using indigenous technology under Namo Bharat train operations.
The 134-kilometre rail corridor will be developed at an estimated cost of ₹20,667 crore. The route will connect Ahmedabad (Sabarmati) with Dholera Special Investment Region (SIR), Dholera Airport, and the historic site of Lothal.
The project is expected to strengthen regional connectivity in Gujarat and support industrial development in the Dholera region, which is being positioned as a major economic and manufacturing hub.
Officials said the corridor will provide faster and modern public transportation while boosting trade, tourism, and employment opportunities.
Focus on Agriculture and Infrastructure
The Cabinet decisions reflect the government’s dual focus on supporting farmers while accelerating industrial and infrastructure growth. The MSP hike is expected to provide relief to millions of cultivators ahead of the sowing season, while the rail and energy projects are aimed at strengthening India’s economic and industrial capacity.
With these approvals, the government has signaled continued investment in rural welfare, energy diversification, and next-generation transport infrastructure.
Cabinet Approves MSP Hike for Kharif Crops 2026-27