Lok Sabha Question No. 4289 (UNSTARRED), answered on 2025-08-19
Subject: MSP according to Cost of Production
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Prof. Sougata Ray

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA

## UNSTARRED QUESTION NO. 4289

TO BE ANSWERED ON 19 TH  AUGUST, 2025

## MSP ACCORDING TO COST OF PRODUCTION

4289. PROF. SOUGATA RAY:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी be pleased to state:

(a) whether the government has followed any criteria to fix the MSP of various agriculture products according to cost of production;

(b) if so, the details thereof;

- (c) the details of Minimum Support Price announced for various agriculture products since the last three years:
- (d) the details of steps taken by the government to ensure the declared MSP to farmers across the country;
- (e)  whether  the  agricultural  income  and  costs  differ  significantly  across  regions  due  to various factors; and
- (f) if so, the reasons thereof and steps taken to ensure uniform income to farmers across the country?

## ANSWER

THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE

क ृ िष एवं िकसान कʞाण राǛ मंũी (SHRI RAMNATH THAKUR)

- (a) & (b):   Every year, Government fixes Minimum Support Prices (MSPs) for 22 mandated agricultural  crops  for  the  country  as  a  whole,  based  on  the  recommendations  of  the Commission for Agricultural Costs & Prices (CACP), after considering the views of the State Governments and Central Ministries/Departments concerned.

While recommending MSP, CACP considers important factors like cost of production, overall demand-supply conditions, domestic and international prices, inter-crop price  parity,  terms  of  trade  between  agricultural  and  non-agricultural  sectors,  the  likely effect on the rest of the economy, besides ensuring rational utilization of land, water and other  production  resources  and  a  minimum  of  50  percent  as  the  margin  over  cost  of production.

Government, in its Union Budget for 2018-19, had made an announcement to keep MSP at a level of minimum one and half times of the cost of production as a pre-determined principle. Accordingly, MSPs for all mandated Kharif, Rabi and other commercial crops have been fixed with a margin of at least 50 percent over weighted average cost of production.

(c): The details of Minimum Support Price announced for 22 mandated agriculture crops since the last three years are given at Annexure.

(d):  To  realize  the  objectives  of  MSP  Policy,  after  announcement of  MSP,  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 Co-  operative  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

(e) & (f): The agricultural  cost of production include all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred in cash and kind on the use of material inputs like seeds, fertilizers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc., miscellaneous expenses and imputed value of family labour.

Agriculture  is  a  State  subject  and  Government  of  India  supports  the  efforts  of States through appropriate policy measures, budgetary allocation and various schemes/programmes. The Government has substantially enhanced the budget allocation of  Department of Agriculture & Farmers Welfare (DA&FW) from Rs. 21933.50 crore BE during 2013-14 to Rs. 1,37,756.55 crore BE during 2025-26. Major schemes/programmes initiated by DA&FW to increase the income of farmers including small and marginal farmers and for the development of agriculture Sector in India are as under:

- i. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
- ii. Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY)
- iii. Pradhan Mantri Fasal Bima Yojana (PMFBY)/ Restructured Weather Based Crop Insurance Scheme (RWBCIS)
- iv. Modified Interest Subvention Scheme (MISS)
- v. Agriculture Infrastructure Fund (AIF)
- vi. Formation and Promotion of 10,000 new Farmer Producers Organizations (FPOs)
- vii. National Bee Keeping and Honey Mission (NBHM)
- viii. Namo Drone Didi
- ix. National Mission on Natural Farming (NMNF)
- x. Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA)
- xi. Agri Fund for Start-Ups & Rural Enterprises' (AgriSURE)
- xii. Per Drop More Crop (PDMC)
- xiii. Sub-Mission on Agriculture Mechanization (SMAM)
- xiv. Paramparagat Krishi Vikas Yojana (PKVY)
- xv. Soil Health & Fertility (SH&F)
- xvi. Rainfed Area Development (RAD)
- xvii. Agroforestry
- xviii. Crop Diversification Programme (CDP)
- xix. Sub-Mission on Agriculture Extension (SMAE)
- xx. Sub-Mission on Seed and Planting Material (SMSP)
- xxi. National Food Security and Nutrition Mission (NFSNM)
- xxii. Integrated Scheme for Agriculture Marketing (ISAM)
- xxiii. Mission for Integrated Development of Horticulture (MIDH)
- xxiv. National Mission on Edible Oils (NMEO)-Oil Palm
- xxv. National Mission on Edible Oils (NMEO)-Oilseeds
- xxvi. Mission Organic Value Chain Development for North Eastern Region
- xxvii. Digital Agriculture Mission
- xxviii. National Bamboo Mission

## Annexure referred to in reply to part (c) of Lok Sabha Un-Starred Question No.4289 due for reply on 19.08.2025

## Minimum Support Price of crops

(Marketing Season-wise)                            (₹/quintal)

| Sr. No.   | Commodities             | KMS 2023-24   | KMS 2024-25   | KMS 2025-26   |
|-----------|-------------------------|---------------|---------------|---------------|
|           | KHARIF CROPS            |               |               |               |
|           | Paddy (Common)          | 2183          | 2300          | 2369          |
| 1         | Paddy (Grade 'A')       | 2203          | 2320          | 2389          |
| 2         | Jowar (Hybrid)          | 3180          | 3371          | 3699          |
|           | Jowar (Maldandi)        | 3225          | 3421          | 3749          |
| 3         | Bajra                   | 2500          | 2625          | 2775          |
| 4         | Ragi                    | 3846          | 4290          | 4886          |
| 5         | Maize                   | 2090          | 2225          | 2400          |
| 6         | Arhar                   | 7000          | 7550          | 8000          |
| 7         | Moong                   | 8558          | 8682          | 8768          |
| 8         | Urad                    | 6950          | 7400          | 7800          |
| 9         | Cotton (Medium Staple ) | 6620          | 7121          | 7710          |
|           | Cotton (Long Staple )   | 7020          | 7521          | 8110          |
| 10        | Groundnut               | 6377          | 6783          | 7263          |
| 11        | Sunflower Seed          | 6760          | 7280          | 7721          |
| 12        | Soyabean Yellow         | 4600          | 4892          | 5328          |
| 13        | Sesamum                 | 8635          | 9267          | 9846          |
| 14        | Nigerseed               | 7734          | 8717          | 9537          |
|           | RABI CROPS              | RMS 2023-24   | RMS 2024-25   | RMS 2025-26   |
| 15        | Wheat                   | 2125          | 2275          | 2425          |
| 16        | Barley                  | 1735          | 1850          | 1980          |
| 17        | Gram                    | 5335          | 5440          | 5650          |
| 18        | Masur                   | 6000          | 6425          | 6700          |
| 19        | Rapeseed & mustard      | 5450          | 5650          | 5950          |
| 20        | Safflower               | 5650          | 5800          | 5940          |
|           | COMMERCIAL CROPS        |               |               |               |
|           |                         | 2023-24       | 2024-25       | 2025-26       |
| 21        | Jute                    | 5050          | 5335          | 5650          |
|           |                         | 2023          | 2024          | 2025          |
|           | Copra (milling)         | 10860         | 11160         | 11582         |
| 22        | Copra (ball)            | 11750         | 12000         | 12100         |

Note:

KMS: Kharif Marketing Season, RMS: Rabi Marketing Season

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