Archive · 2 Jun 2025
India Extends Loan Scheme, Raises Crop Prices to Aid Farmers
The Indian government is helping farmers in a few ways.
They're continuing a program where farmers can get loans with lower interest rates, making it cheaper for them to borrow money.
The government also announced higher prices, called Minimum Support Prices (MSPs), for crops like paddy, maize, and cotton, which helps farmers earn more money for their harvests.
They also increased the MSP for other crops for the 2025-26 season.
This aims to help farmers with their costs.
They're also helping farmers by extending the Kisan Credit Card (KCC) loan.
The government extended the Modified Interest Subvention Scheme (MISS) for Kisan Credit Card (KCC) loans until FY26.
The scheme provides farmers with subsidized loans at an effective interest rate of 4% if they repay on time.
The government allocated ₹15,640 crore for the continued implementation of the MISS.
MSP for paddy has been increased to ₹2,369 per quintal for the 2025-26 marketing season.
The MSP for various kharif crops, including pulses and cotton, has also been increased.
- Who
- The Indian government
- What
- Extended the interest subvention scheme for Kisan Credit Card loans and increased the MSP for various crops.
- When
- May 2024
- Where
- Across India
- Why
- To support farmers and ensure financial stability
Farmers
Government
Financial Aid and Loan Terms
Farmers
Farmers benefit from subsidized loans.
Government
The government provides financial assistance through interest subvention on KCC loans.
- MISS Allocation
- ₹15,640 crore
- Subsidized Interest Rate (KCC)
- 7%
- Effective Borrowing Rate with PRI
- 4%
- KCC Loan Limit (Agriculture)
- ₹3 lakh
- KCC Loan Limit (Allied Activities)
- ₹2 lakh
- Paddy MSP (2025-26)
- ₹2,369/quintal
- Tur (Arhar) MSP Increase
- ₹8,000/quintal
Sources
Cabinet hikes MSP for 14 kharif crops for marketing season 2025-26
Govt raises paddy MSP by ₹69 to ₹2,369 per quintal for 2025-26
Bonanza for farmers: Government hikes MSP for Kharif crops, extends facility for low-interest loans
MSP boost for farmers as Cabinet clears new rates for Kharif season 2025-26
Government approves continuation of interest subvention scheme for farmers
Cotton MSP hiked by 589, taking rates to 7,710-8,110/q
Centre hikes MSP for 14 crops, but farmers not happy
Govt raises paddy MSP by ₹69 to ₹2,369 per quintal for 2025-26
