PrepMaticCurrent affairs · September 2026
Tamil Nadu sets paddy procurement prices for KMS 2026-27
On 13 September 2026 the Tamil Nadu government said direct paddy procurement centres will pay ₹2,750 a quintal for fine (sanna) paddy and ₹2,600 a quintal for common paddy in the 2026-27 Kharif Marketing Season (KMS). The price is the Union government's Minimum Support Price (MSP) plus an enlarged state incentive.
How the price is built
| Variety | Union MSP | State incentive (earlier) | State incentive (now) | Price paid |
|---|---|---|---|---|
| Fine | ₹2,461 | ₹156 | ₹289 | ₹2,750 |
| Common | ₹2,441 | ₹131 | ₹159 | ₹2,600 |
All figures are per quintal. The Union government allowed procurement from 1 September 2026. The Chief Minister announced the higher incentive in the Assembly under Rule 110. By 11 September the Tamil Nadu Civil Supplies Corporation had opened 401 direct procurement centres in 12 districts and bought 42,082 tonnes from 7,043 farmers. The districts include Thanjavur, Tiruvarur, Cuddalore, Mayiladuthurai, Nagapattinam, Perambalur, Chengalpattu, Erode, Kancheepuram, Ranipet, Theni and Tiruchirappalli.
Why it matters for TNPSC
Agriculture, MSP and procurement belong to Unit V, Indian Economy and Development Administration in Tamil Nadu. MSP is announced by the Union government on the recommendation of the Commission for Agricultural Costs and Prices (CACP); a state can add a bonus or incentive on top, as Tamil Nadu does here. Read more on the Indian economy page.
Practice questions
Question 1. In KMS 2026-27, what price per quintal has Tamil Nadu ordered for common paddy at its direct procurement centres?
- A. ₹2,441
- B. ₹2,461
- C. ₹2,600
- D. ₹2,750
Question 2. Which body recommends the Minimum Support Price for paddy?
- A. NITI Aayog
- B. Reserve Bank of India
- C. Finance Commission
- D. Commission for Agricultural Costs and Prices
Answers
- C. The Union MSP of ₹2,441 plus the state incentive of ₹159 gives ₹2,600.
- D. CACP recommends MSPs, and the Union government announces them.
Source
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