Lok Sabha Question No. 2674 (UNSTARRED), answered on 2025-08-05
Subject: Legal Status of MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Babu Singh Kushwaha

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

## LOK SABHA UNSTARRED QUESTION NO. 2674

TO BE ANSWERED ON THE 05 TH  AUGUST, 2025

## LEGAL STATUS OF MSP

2674. SHRI BABU SINGH KUSHWAHA:

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

- (a) whether the Government is aware of the farmers' demand to grant legal status to the Minimum Support Price (MSP);
- (b) if so, the steps taken by the Government so far in this regard;
- (c) if not, whether the Government proposes to bring any legislation after having dialogue with the farmers in this regard; and
- (d) whether the Government is formulating any action plan to implement the recommendations of the Swaminathan Commission, if so, the details thereof?

## ANSWER

THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण राǛ मंũी (SHRI RAMNATH THAKUR)

- (a) to (c):  Every year, Government fixes Minimum Support Prices (MSPs) for 22 mandated agricultural crops for the country, 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.

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 which benefitted farmers of whole country.

Increased MSP has benefited farmers which are evident from data of procurement and MSP amount paid to the farmers. The details of procurement and MSP amount paid to farmers during last five years including current year are given at Annexure.

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.  The  meetings  of  this committee  are  being  organized  regularly  and  till  date,  6  meetings  have  been  held. Additionally, 39 meetings of various sub-committees have also been held.

(d):  On  the  recommendations  of  the  Swaminathan  Commission,  an  Inter-  Ministerial Committee (IMC) was constituted in the year 2007, which recommended 201 Action Points to be implemented by the Government. All 201 Action Points have been implemented.

Annexure Annexure referred to in reply to part (a) to (c) of Lok Sabha Untarred Question No.

2674 due for reply on 05.08.2025

## Procurement & MSP value of MSP Crops

| All MSP Crops                   | 2020-21   | 2021-22   | 2022-23   | 2023-24   | 2024-25*   |
|---------------------------------|-----------|-----------|-----------|-----------|------------|
| Total Procurement (In LMT)      | 1,368     | 1,083     | 1,118     | 1,089     | 1,175      |
| Total MSP Value (In lakh Crore) | 2.91      | 2.25      | 2.47      | 2.63      | 3.33       |

*As on 30.06.2025

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