INVC NEWS
New Delhi — : The Modi government has taken several impactful decisions during the latest Union Cabinet meeting, aimed at supporting India’s farmers and boosting the country’s infrastructure. In a move to strengthen the agricultural economy, the government has approved a substantial increase in the Minimum Support Price (MSP) for Kharif crops and has also greenlit a series of development projects including railway upgrades and a new highway in Andhra Pradesh.
MSP for Kharif Crops Raised by Up to 50%
Farmers across India will now benefit from a revised MSP that reflects a significant hike. The MSP for paddy has been raised to Rs 2,369 per quintal, a 3% increase from the previous year. For A-grade paddy, the new rate is Rs 2,389. Tur, urad, and moong pulses have also seen price hikes, with tur rising to Rs 8,000, urad to Rs 7,800, and moong to Rs 8,768 per quintal. The Cabinet Committee on Economic Affairs estimates the total value of MSPs at Rs 2.07 lakh crore for the 2025-26 Kharif marketing season.
The MSP revisions are based on the government’s promise to set support prices at least 1.5 times the all-India weighted average cost of production, a policy outlined in the Union Budget of 2018-19.
Affordable Loans with Interest Subsidy for Farmers
To further support the agriculture sector, the Cabinet has approved an interest subsidy worth Rs 15,642 crore. This move ensures affordable working capital for farmers via the Kisan Credit Card scheme. Eligible farmers can now avail loans up to Rs 3 lakh for crops and Rs 2 lakh for allied activities like animal husbandry at a concessional 7% interest rate per annum.
Highway Expansion: Badvel-Nellore Four-Lane Project
A significant infrastructure push includes the approval of the Badvel-Nellore four-lane highway, which will cost Rs 3,653 crore. This project will improve port connectivity from Krishnapatnam Port and enhance access across three major industrial corridors in Andhra Pradesh.
Railway Multitracking Projects Approved
Two major railway projects have been cleared to improve logistical efficiency in Maharashtra and Madhya Pradesh. The Ratlam-Nagda third and fourth lines and the Wardha-Ballarsha fourth line projects will cover a total of 176 km and are expected to be completed by 2029-30. These upgrades are projected to generate about 74 lakh man-days of employment and positively impact approximately 784 villages, benefiting nearly 19.74 lakh people.
India’s Farmers and Infrastructure Sector to See Long-Term Gains
With a sharp focus on both rural welfare and national infrastructure, the Modi Cabinet’s latest announcements are poised to deliver widespread benefits. From direct support to farmers through enhanced MSP and loan access to strategic investments in transport infrastructure, the government is laying down robust groundwork for inclusive growth across India.
