Tamil Nadu fixes MSP for paddy; procurement to begin September 1

CHENNAI: The Tamil Nadu government on Friday fixed the Minimum Support Price (MSP) for paddy for the Kharif Marketing Season (KMS) 2025-26 and announced that procurement would commence on September 1, advancing the schedule by one month.

According to the Government Order issued by Satyabrata Sahoo, principal secretary, Cooperation, Food and Consumer Protection department, the Union government has fixed the MSP for paddy at Rs 2,389 per quintal for the Grade 'A' variety and Rs 2,369 per quintal for the common variety. In addition to this, the State government has announced an incentive of Rs 156 per quintal for Grade 'A' and Rs 131 per quintal for the common variety.

With this, the effective procurement rates stand at Rs 2,545 per quintal for Grade 'A' and Rs 2,500 per quintal for the common variety.

The Tamil Nadu Civil Supplies Corporation has set a procurement target of 42 lakh metric tonnes, including 30 lakh MT of Grade 'A' paddy and 12 lakh MT of the common variety. Procurement will be carried out under the Decentralised Procurement System at Direct Purchase Centres across the State.

District Collectors in the Cauvery Delta region have been instructed to open the required number of Direct Purchase Centres, while those in non-delta regions will permit cooperative institutions and the National Cooperative Consumers' Federation to procure paddy.

The procured paddy will be stored on behalf of the Union government for contribution to the Central Pool as rice. The revised MSP will remain in effect until August 31, 2026.

Paddy Procurement in TN (KMS 2025-26)

* Procurement Start Date: September 1, 2025

* Procurement End Date: August 31, 2026

* MSP fixed by Government of India:

* Grade ‘A’ Paddy: Rs 2,389 per quintal

* Common Paddy: Rs 2,369 per quintal

* State Government Incentive:

* Grade ‘A’ Paddy: Rs 156 per quintal

* Common Paddy: Rs 131 per quintal

* Total Procurement Price (MSP + Incentive):

* Grade ‘A’ Paddy: Rs 2,545 per quintal

* Common Paddy: Rs 2,500 per quintal

* Procurement Target: 42 lakh MT

* Grade ‘A’ Paddy: 30 lakh MT

* Common Paddy: 12 lakh MT

* System: Decentralized Procurement through Direct Purchase Centres