News Capsule: Centre advises states to avoid bonus over MSP
15-Apr-2026 09:28 AM
News Capsule: Centre advises states to avoid bonus over MSP
★ The central government has urged states to refrain from offering any bonus over the Minimum Support Price (MSP) for procurement of paddy and wheat. It believes that such incentives are distorting the market and putting unnecessary pressure on government stocks.
★ Due to continuous rising production of wheat and rice, central pool stocks have surged well beyond requirement. Currently, total stocks stand at around 60 million tonnes (38 MT rice and 22 MT wheat), nearly three times the buffer norm of about 21 million tonnes. Additionally, around 36 million tonnes of rice is yet to be delivered by millers.
★ Tamil Nadu has been specifically advised to discontinue its ₹156 per quintal bonus over MSP for the 2025–26 season. Other states such as Odisha, Chhattisgarh, Kerala, Jharkhand, West Bengal, Rajasthan and Madhya Pradesh are also providing bonuses or incentives over MSP for paddy and wheat.
Examples from states:
Odisha: ₹800 per quintal input subsidy (paddy)
Chhattisgarh: ₹9,000 per acre (up to 15 quintals/acre)
Kerala: ₹631 per quintal bonus (paddy)
Jharkhand: ₹100 per quintal
West Bengal: ₹20 per quintal