Lok Sabha Question No. 24 (STARRED), answered on 2025-07-22
Subject: Minimum Support Price for Kharif Crops
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Eatala Rajender, Smt. D K Aruna

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

## LOK SABHA

## STARRED QUESTION NO. 24 TO BE ANSWERED ON 22 ND  JULY, 2025

## MINIMUM SUPPORT PRICE FOR KHARIF CROPS

## *24.  SMT. D.K. ARUNA: SHRI EATALA RAJENDER:

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

(a) whether the Minimum Support Price (MSP) for Kharif crops has been increased to cover all the input costs as the MSP has become the maximum suffering for the producers, if so, the details thereof;

(b) the details of studies done/action taken till now in this regard, crop-wise;

(c) whether the Government is crediting itself for declaring a higher MSP for crops, but the MSP  is  far  lower  than  the  "cost  (C2)  plus  50  per  cent"  formula  recommended  by  the Swaminathan Commission, if so, the details thereof; and

- (d) the corrective steps being taken through agriculture reforms to cover all the crops and products through MSP so as to benefit every farmer in the country, State/UT-wise including Telangana, West Bengal, Andhra Pradesh and Assam?

## ANSWER

THE MINISTER OF AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण मंũी (SHRI SHIVRAJ SINGH CHOUHAN)

- (a) to (d): A Statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (d) OF LOK SABHA STARRED QUESTION  NO.  24  DUE  FOR  ANSWER  ON  22 ND   JULY,  2025  REGARDING  'MINIMUM SUPPORT PRICE for KHARIF CROPS'.

(a) & (b): Every year, Government fixes Minimum Support Price (MSP) for 22 mandated agricultural crops including 14 Kharif crops, based on the recommendations of Commission for Agricultural  Costs  &  Prices  (CACP),  after  considering  the  views  of  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. The costs include all paid out costs incurred in cash and kind and imputed value of family labour.

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- I.

The  NITI  Aayog  (erstwhile  Planning  Commission)  has  conducted  a  study  entitled 'Efficacy of minimum support prices on farmers', in 2016. The study has found, among other things, that MSP declared by the Government has encouraged 78% of the farmers covered under the study for adopting improved methods of farming such as high yielding varieties of seeds, organic manure, chemical fertilizer, pesticides and improved methods of harvesting etc.

(c)  & (d): 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 including Telangana, West Bengal, Andhra Pradesh and Assam. The cost of production and MSP announced of 22 mandated crops for marketing season 2025-26 is given at Annexure-II .

For benefits of farmers, Government has taken several other initiatives which include following:

- (i) After budget announcement in 2018-19, Government had fixed MSP of 22 mandated crops at a level of at least one and half times of the cost of production.
- (ii) Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
- (iii) Pradhan Mantri Fasal Bima Yojana (PMFBY)/Restructured Weather Based Crop Insurance Scheme (RWBCIS)
- (iv) Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY)
- (v) Agriculture Infrastructure Fund (AIF)
- (vi) Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)
- (vii)  Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)
- (viii)  Modified Interest Subvention Scheme (MISS)
- (ix) National Bee Keeping and Honey Mission (NBHM)
- (x) Agri Fund for Start-Ups & Rural Enterprises' (AgriSURE)
- (xi) National Mission on Natural Farming
- (xii)  Krishonnati Yojana
- (xiii)  Rashtriya Krishi Vikas Yojana (RKVY)

STATEMENT  REFERRED  TO  IN  REPLY  TO  PART  (b)  OF  LOK  SABHA  STARRED QUESTION NO. 24* DUE FOR ANSWER ON 22.07.2025 REGARDING 'MINIMUM SUPPORT PRICE for KHARIF CROPS'

## 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

STATEMENT REFERRED TO IN REPLY TO PART (c) to (d) OF LOK SABHA STARRED QUESTION NO. 24* DUE FOR ANSWER ON 22.07.2025 REGARDING 'MINIMUM SUPPORT PRICE for KHARIF CROPS'

| Cost, MSP and return of mandated Crops (Marketing Season wise)   | Cost, MSP and return of mandated Crops (Marketing Season wise)   | Cost, MSP and return of mandated Crops (Marketing Season wise)   | Cost, MSP and return of mandated Crops (Marketing Season wise)   | Cost, MSP and return of mandated Crops (Marketing Season wise)   |
|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|
| Sl. No.                                                          | Commodity                                                        | KMS-2025-26                                                      | KMS-2025-26                                                      | KMS-2025-26                                                      |
|                                                                  | KHARIF CROPS                                                     | Cost                                                             | MSP                                                              | Return (%)                                                       |
| 1                                                                | PADDY(Common)                                                    | 1579                                                             | 2369                                                             | 50                                                               |
|                                                                  | (Grade A) ^                                                      |                                                                  | 2389                                                             |                                                                  |
| 2                                                                | JOWAR (Hybrid)                                                   | 2466                                                             | 3699                                                             | 50                                                               |
|                                                                  | (Maldandi) ^                                                     |                                                                  | 3749                                                             |                                                                  |
| 3                                                                | BAJRA                                                            | 1703                                                             | 2775                                                             | 63                                                               |
| 4                                                                | RAGI                                                             | 3257                                                             | 4886                                                             | 50                                                               |
| 5                                                                | MAIZE                                                            | 1508                                                             | 2400                                                             | 59                                                               |
| 6                                                                | ARHAR(Tur)                                                       | 5038                                                             | 8000                                                             | 59                                                               |
| 7                                                                | MOONG                                                            | 5845                                                             | 8768                                                             | 50                                                               |
| 8                                                                | URAD                                                             | 5114                                                             | 7800                                                             | 53                                                               |
| 9                                                                | COTTON (Medium Staple)                                           | 5140                                                             | 7710                                                             | 50                                                               |
|                                                                  | (Long Staple) ^                                                  |                                                                  | 8110                                                             |                                                                  |
| 10                                                               | GROUNDNUT                                                        | 4842                                                             | 7263                                                             | 50                                                               |
| 11                                                               | SUNFLOWER SEED                                                   | 5147                                                             | 7721                                                             | 50                                                               |
| 12                                                               | SOYABEAN                                                         | 3552                                                             | 5328                                                             | 50                                                               |
| 13                                                               | SESAMUM                                                          | 6564                                                             | 9846                                                             | 50                                                               |
| 14                                                               | NIGERSEED                                                        | 6358                                                             | 9537                                                             | 50                                                               |
|                                                                  | RABI CROPS                                                       | RMS-2025-26                                                      | RMS-2025-26                                                      |                                                                  |
| 15                                                               | WHEAT                                                            | 1182                                                             | 2425                                                             | 105                                                              |
| 16                                                               | BARLEY                                                           | 1239                                                             | 1980                                                             | 60                                                               |
| 17                                                               | GRAM                                                             | 3527                                                             | 5650                                                             | 60                                                               |
| 18                                                               | MASUR(LENTIL)                                                    | 3537                                                             | 6700                                                             | 89                                                               |
| 19                                                               | RAPESEED/MUSTARD                                                 | 3011                                                             | 5950                                                             | 98                                                               |
| 20                                                               | SAFFLOWER                                                        | 3960                                                             | 5940                                                             | 50                                                               |
|                                                                  | OTHER CROPS                                                      |                                                                  |                                                                  |                                                                  |
|                                                                  |                                                                  | 2025                                                             | 2025                                                             |                                                                  |
| 21                                                               | COPRA (Milling)                                                  | 7721                                                             | 11582                                                            | 50                                                               |
|                                                                  | (Ball)^                                                          |                                                                  | 12100                                                            |                                                                  |
|                                                                  |                                                                  | 2025-26                                                          | 2025-26                                                          |                                                                  |
| 22                                                               | JUTE                                                             | 3387                                                             | 5650                                                             | 67                                                               |

^Cost data are not available for Paddy (Grade A), Jower (Maldandi), Cotton (Long staple) and Copra (Ball).

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