The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday (May 13, 2026) approved key decisions aimed at strengthening agriculture and advancing India’s long-term energy independence.
One of the major highlights of the meeting was a significant increase in the Minimum Support Price (MSP) for the 2026–27 kharif marketing season. The government raised the MSP of paddy by ₹72 to ₹2,441 per quintal. Union Minister Ashwini Vaishnaw said the decision reflects a continued push toward improving farmer incomes and ensuring better returns for agricultural produce.
Officials said MSP has been revised for 14 kharif crops based on a formula ensuring at least 50% profit over production cost. The government estimates a total procurement impact of around ₹2.6 lakh crore, benefiting farmers across the country.
Cabinet’s Integrated Focus on Agriculture and Energy Self-Reliance
Alongside agricultural reforms, the Cabinet also outlined a major shift in the country’s agriculture and energy policy of India, focusing on linking rural growth with energy self-reliance. The government emphasized that strengthening both sectors together is key to long-term economic stability.
Under this agriculture and energy policy of India, the Centre approved large-scale coal gasification initiatives aimed at converting domestic coal into gas. Officials said India has sufficient coal reserves to meet energy requirements for nearly 200 years, and modern technology will now be used to convert coal into cleaner usable forms.
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The gas produced through coal gasification will be used for fertilizer production, electricity generation, and industrial chemical manufacturing. This integrated approach is central to the government’s agriculture and energy policy of India, which aims to reduce dependency on imported gas and chemicals.
To accelerate implementation, the government also approved a ₹37,500 crore incentive scheme for coal gasification projects. According to officials, this investment will strengthen domestic production capacity and reinforce the country’s agriculture and energy policy of India in the coming years.
The Cabinet stated that aligning agriculture growth with energy security remains a key national priority, and the latest decisions mark a major step toward self-reliance in both sectors.