Lok Sabha Question No. 257 (STARRED), answered on 2025-03-18
Subject: Legal Guarantee for Minimum Support Price to Agricultural Products
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Prof. Sougata Ray

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

## LOK SABHA STARRED QUESTION NO. 257

TO BE ANSWERED ON 18 TH  MARCH 2025

## LEGAL GUARANTEE FOR MINIMUM SUPOORT PRICE TO AGRICULTURAL PRODUCTS

## *257.  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 any proposal to give legal guarantee for Minimum Support Price (MSP) for Agricultural Products;

(b) if so, the details thereof;

- (c) whether the Government had any comprehensive discussion with the protesting farmers and its leader who has been on a fast unto death since 26 November, 2024 on ensuring legal guarantee for MSP;
- (d) if so, the details thereof and the response from protesting farmers; and
- (e) the details of the demands of protesting farmers and the Government's view on these demands?

## ANSWER

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

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

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (e) OF LOK SABHA STARRED QUESTION NO. 257 DUE FOR ANSWER ON 18 TH  MARCH 2025 REGARDING 'LEGAL GUARANTEE FOR MINIMUM SUPPORT PRICE TO AGRICULTURAL PRODUCTS'

(a) & (b): 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.

During  2014-15  to  2024-25  (upto  February,  2025),  Government  has  procured 7574.18 Lakh Metric Tonnes (LMT) of paddy with MSP value of ₹ 14.08 lakh crore and 3057.38 LMT of wheat with MSP value of ₹ 5.65 lakh crore. During the same period, a quantity of 172.47 LMT of pulses and 121.48 LMT of oilseeds have been procured with MSP value of ₹ 92.8 thousand crore and ₹ 61.8 thousand crore respectively.

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.

(c) to (e): Government  of  India  had  initiated  discussions  with  farmer  leaders  on  8th February, 2024. Subsequently, discussions were held on 12 th , 15 th , 18 th  February 2024, 14 th February 2025 and 22 nd  February 2025. Talks covered minimum support price (MSP) and other demands.

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