Lok Sabha Question No. 319 (UNSTARRED), answered on 2025-07-22
Subject: Strategy to ensure MSP for crops other than Paddy and Wheat
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Smt. Bharti Pardhi, Shri Shrirang Appa Chandu Barne

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA

## UNSTARRED QUESTION NO. 319

TO BE ANSWERED ON THE 22 ND  JULY, 2025

## STRATEGY TO ENSURE MSP FOR CROPS OTHER THAN PADDY AND WHEAT

## 319. SMT. BHARTI PARDHI:

SHRI SHRIRANG  APPA CHANDU BARNE:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण मंğी be pleased to state:

(a) the details  of strategy  of the  Union Government to ensure that farmers get MSP for all their notified crops, particularly for crops other than paddy and wheat; (b) the details of steps taken to strengthen the procurement infrastructure in the States where it is weak; (c) the manner  in which the  Union  Government  is addressing concerns  about the effectiveness or in areas with limited market access; and (d) whether there are any plans to explore alternative price support mechanisms or introduce a  legal  guarantee  for  MSP  to  provide  greater  certainly  to  farmers  and  if  so,  the  details thereof?

## ANSWER

THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण राÏय मंğी (SHRI RAMNATH THAKUR)

(a) to (c): Government fixes Minimum Support Prices (MSPs) for 22 mandated agricultural  crops  based  on  the  recommendations  of  Commission  for  Agricultural  Costs  & Prices (CACP), after considering the views of State Governments and Central Ministries/Departments  concerned.  The  22  mandated    crops  include  14  Kharif  crops  viz. paddy, jowar, bajra, maize, ragi, tur (arhar), moong, urad, groundnut, soyabean, sunflower, sesamum,  nigerseed,  cotton  and  6  Rabi  crops  viz.  wheat,  barley,  gram,  masur  (lentil), rapeseed & mustard, safflower and two commercial crops viz. jute and copra.

The Union Budget for 2018-19 had announced the pre-determined principle to keep MSPs at levels of one and half times of the cost of production. Accordingly, Government had increased MSPs for all mandated Kharif, Rabi and other Commercial crops with a minimum return  of  50  percent  over  all India  weighted  average cost  of production  from  year 2018-19 onwards.

Government procures cereals and coarse cereals through Food Corporation of India (FCI)  and  other  designated  State  Agencies  to  provide  price  support  to  the  farmers. Procurement  of  pulses,  oilseeds  and  copra  is  done  under  Price  Support  Scheme  under Umbrella  Scheme  of  Pradhan  Mantri  Annadata  Aay  Sanrakshan  Abhiyan  (PM-AASHA),  in consultation  with  the  concerned  State  Government  as  and  when  market  price  of  these produce fall below the MSP. Procurement agencies under PM-AASHA Scheme are National Agricultural  Cooperative  Marketing  Federation  of  India  Ltd  (NAFED)  and  National  Cooperative Consumers' Federation of India Ltd. (NCCF). Cotton and Jute are also procured by Government at MSP through Cotton Corporation of India (CCI) and Jute Corporation of India (JCI), respectively.

Under the integrated Scheme of Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA),  Government  is  implementing Price Support Scheme  (PSS)  and  Price Deficiency Payment Scheme (PDPS).

Price Support Scheme (PSS) is implemented on the request of the State Govt./ UT that agrees to exempt from levy of Mandi tax on the procurement of notified pulses, oilseeds and  copra  and  make  arrangements  like  booking  of  CWC/SWC  Godowns/scientific  storage facility,  identification  of  procurement  centers,  arrangement  of  gunny  bags,  GPRS  enabled transportation  facilities,  weighing  machines.  Moisture/foreign  matters/oil  content  testing machines etc. in consultation with Central Nodal Agencies (CNAs) like National Agricultural Cooperative  Marketing  Federation  of  India  Ltd.  (NAFED)  and  National  Co-  operative Consumers' Federation of India Ltd. (NCCF)and State level agencies.

From  the  procurement  year  2024-25,  the  sanction  for  the  procurement  of  notified Pulses, Oilseeds and Copra under PSS is given to the State/UT initially upto a maximum of 25% of the production of the State for that particular season. Subsequently, if the State/UT achieves the overall procurement against sanctioned quantity and further intends to procure more beyond the sanctioned quantity, the proposal for the procurement under the PSS is put up for the consideration of the Committee of Secretaries (COS) restricted upto a maximum of 25% of the national production. However, in order to incentivize the farmers contributing in enhancement of domestic production of pulses and to reduce the dependence on imports, the Government has allowed the procurement of Tur, Urad and Masur under PSS equivalent to 100% of the production of the State for the procurement year 2024-25.

Price  Deficit  Payment  Scheme  (PDPS)    envisages  the  direct  payment  of  the  price difference between the MSP and the selling / modal price in notified market upto 15% of MSP value  (including  2%  administrative  cost)  by  the  Central  Government  to  the  pre-  registered farmers selling the oilseeds upto 40% of its production to the prescribed Fair Average Quality (FAQ) in the notified market yard through a transparent auction process within the stipulated period. However, the States/UTs have the option to implement either PSS or PDPS for the particular  oilseeds  for  the  particular  year/season.  If  any  State  is  willing  to  cover  quantities beyond 40%, they can do so from it's resources.

For  perishable  agricultural  and  horticultural  commodities  including  vegetables  and fruits  which  are  not  covered  under  the  MSP,  Government  implements  Market  Intervention

Scheme  (MIS)  on  the  request  of  State/UT  Government  concerned.  The  objective  of intervention is to protect the growers of these commodities from making distress sale in the event  of  a  bumper  crop  during  the  peak  arrival  period  when  the  prices  tend  to  fall  below economic levels and cost of production.

(d): To  make  Minimum  Support  Prices  (MSPs)  more  effective  and  transparent,  a committee has been constituted on 12 th July 2022. The subject matter of the committee also include (i) Suggestions on practicality to give more autonomy to Commission for Agricultural Costs and Prices (CACP) and measures to make it more scientific, and (ii) To strengthen the Agricultural  Marketing  System  as  per  the  changing  requirements  of  the  country  to  ensure higher value to the farmers through remunerative prices of their produce by taking advantage of the domestic and export opportunities.

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