KATHMANDU: The Ministry of Agriculture, Forest and Environment has announced the implementation of a new system to determine the minimum support price (MSP) and minimum procurement price of major food crops before the planting season.
Issuing a new directive, the ministry said the decision was taken under the government’s 100-point governance reform programme, which includes setting MSP for key agricultural commodities in advance.
The “Directive on Determination of Minimum Support Price and Minimum Procurement Price, 2026” was approved through a ministerial decision on April 29, registered with the Ministry of Law, Justice and Parliamentary Affairs, and made public via the ministry’s website, according to officials.
Minister for Agriculture, Forest and Environment Geeta Chaudhary said the new system will help farmers make informed decisions on crop selection based on production costs, expected returns, and market conditions.
“Since the price is determined in advance, farmers can decide whether to grow a particular crop or choose an alternative based on assured returns,” she said.
The ministry stated that the minimum support prices for wheat and spring paddy for the fiscal year 2025/26 have already been approved by the Council of Ministers.
Similarly, for fiscal year 2026/27, the government has fixed the MSP for monsoon paddy through a Cabinet meeting held on May 25.
According to the decision, the MSP for coarse paddy has been set at Rs 3,660 per quintal, while medium-grade paddy has been fixed at Rs 3,860 per quintal.
The ministry further informed that the process of determining the MSP for monsoon maize for the upcoming fiscal year has also begun. As there was previously no provision for MSP on maize, the ministry is preparing to submit a proposal to the Cabinet by the end of March.
In the case of sugarcane, the minimum procurement price for fiscal year 2025/26 has already been set through a Cabinet decision dated December 8, 2025. The proposal for determining the price for fiscal year 2026/27 will be submitted to the Cabinet by the end of November, the ministry added.
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