Cabinet clears MSP hike for Kharif crops, farm credit relief, and railway infra expansion | Key details

The Union Cabinet on Tuesday approved a range of significant measures impacting agriculture and infrastructure, including a fresh hike in the Minimum Support Prices (MSP) for Kharif crops, continuation of the Interest Subvention Scheme for farmers, and green signals for key road and rail projects across Andhra Pradesh, Madhya Pradesh, and Maharashtra.

MSP hike for Kharif crops ensures 50% profit margin over cost

Union Minister Ashwini Vaishnaw said the Cabinet has approved the MSP for Kharif crops for the 2025–26 season, based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). The estimated procurement outlay stands at Rs 2.07 lakh crore.

“In the past 10–11 years, there has been a major hike in Kharif crop MSPs. Prime Minister Narendra Modi has ensured that farmers receive at least 50% profit over their production cost. We have accordingly ensured that across all crops, this margin is protected,” Vaishnaw said.

Subsidised farm loans under Interest Subvention Scheme to continue

The Cabinet also cleared the continuation of the Interest Subvention Scheme, which provides short-term credit to farmers at a concessional interest rate. Farmers will continue to get working capital loans up to Rs 2 lakh at an effective interest rate of 4%.

Vaishnaw said the Kisan Credit Card (KCC) initiative, first introduced during the tenure of former Prime Minister Atal Bihari Vajpayee, had made access to working capital easier for farmers. “Through this scheme, we have reduced the cost of credit and enabled easier access to loans for small and marginal farmers,” he added.

New 4-lane highway in Andhra Pradesh under DBFOT model

In a boost to road infrastructure, the Cabinet approved the development of a 4-lane highway connecting Badvel-Gopavaram on National Highway-67 to Guruvindapudi on NH-16 in Andhra Pradesh. The project will follow the Design-Build-Finance-Operate-Transfer (DBFOT) model.

Giving details about it, Union Minister Ashwini Vaishnaw said, “There is Krishnapatnam Port in Andhra Pradesh. Its last section, NH-67 was a bottleneck. Around 105 kilometres has been approved as a four-lane highway (Badvel Nellore 4-lane highway). This is being done at an expense of Rs 3,653 crores.”

Railway network expansion in MP and Maharashtra

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, also approved two key multitracking railway projects aimed at increasing line capacity, enhancing connectivity, and ensuring faster, more efficient movement of both passengers and goods.

The approved projects are:

1. Ratlam–Nagda 3rd and 4th line (Madhya Pradesh)
2. Wardha–Balharshah 4th line (Maharashtra)

Together, the projects are estimated to cost Rs 3,399 crore and are expected to be completed by 2029–30. The expansion will cover about 176 km of additional railway lines and benefit four districts across both states. “These initiatives are part of the PM-Gati Shakti National Master Plan, aimed at integrated, multi-modal connectivity,” the government said in a statement. The multitracking is expected to improve connectivity for around 784 villages, home to nearly 19.74 lakh people.

Highlighting the strategic value of the Ratlam–Nagda project, Vaishnaw said: “This is an important project as it connects the Delhi–Mumbai corridor. Ratlam junction is a key node for rail movement in all four directions, and this upgrade will close long-standing infrastructure gaps.”

Speaking about the Wardha–Ballarshah railway line, Vaishnaw said: “This project involves the four-laning of the Wardha–Ballarshah line, which lies on the busy trunk route between Delhi and Chennai. It is a highly congested section, and enhancing its capacity is essential. The project will span 135 km and will involve an investment of Rs 2,381 crore.”

(With inputs from agency)