Centre raises paddy procurement prices by ₹72/quintal; TN debate on MSP and input costs

Direct fact

In May 2026, the Union Cabinet approved a ₹72 per quintal increase in paddy procurement prices, fixing common paddy at ₹2,441 and grade-A paddy at ₹2,461, a move that triggered demands for a ₹3,500 per quintal procurement price.

Key specifics

• The Cabinet decision raised common paddy MSP to ₹2,441/quintal and grade-A paddy to ₹2,461/quintal.
• The increase was only ₹72/quintal, compared with last year’s rates of ₹2,369 and ₹2,389.
• According to the report, the year-on-year rise was about 3%, the same as the previous year’s increase of ₹69.
• Farmers in Tamil Nadu said production cost is above ₹2,300/quintal, and demanded a procurement price of ₹3,500/quintal.
• The article cites the M.S. Swaminathan Committee principle of adding 50% profit over production cost.

Exam lens

Question type: economy/agriculture, MSP and procurement price, Cabinet approval, ₹2,441 and ₹2,461 are the key numbers. TNPSC may ask the difference between common and grade-A paddy prices or the Swaminathan Committee recommendation.