Lok Sabha Question No. 4235 (UNSTARRED), answered on 2025-08-19
Subject: Criteria to Increase MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Raja Ram Singh

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

## LOK SABHA UNSTARRED QUESTION NO. 4235

TO BE ANSWERED ON THE 19 TH  AUGUST, 2025

## CRITERIA TO INCREASE MSP

4235.  SHRI RAJA RAM SINGH:

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

- (a) whether the Ministry can justify the marginal hike of only 3% in MSP for paddy, and a mere 1% for moong and 5% for tur, despite long-standing demands by farmers' unions for a substantial increase in essential crops;
- (b) the criteria used to determine higher MSP increases for ragi (14%) and jowar (10%), which have a limited cultivation base, while ignoring crops like cotton, tur, and moong that dominate  farmers  livelihoods  across  States  like  Punjab,  Telangana,  Maharashtra,  and Madhya Pradesh;
- (c) whether the Ministry has assessed the impact of such pricing on procurement, crop planning, and farmer income stability, if so, the details thereof as well as the stakeholders on the same; and
- (d) whether any consultations were held with farmers before finalising these MSP rates, and if so, the details of their key demands?

## ANSWER

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

- (a) to (d): Every  year,  Government  fixes  Minimum  Support  Prices  (MSPs)  for  22 mandated agricultural crops including 14 kharif crops for the country as a whole based on the  recommendations  of  Commission  for  Agricultural  Costs  &  Prices  (CACP),  after considering the views of State Governments and Central Ministries/Departments concerned.  CACP  also  holds  consultations  with  various  stakeholders  including  State governments and farmers' representatives before finalizing its recommendations on MSP.

While  recommending MSPs,  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.

The Union Budget for 2018-19 had announced the pre-determined principle to keep MSPs  at  levels  of  at  least  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.

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 current year are given as under:

## Procurement & MSP value of MSP Crops during 2024-25 (July to June)

| Total Procurement (In LMT)   |   Total MSP Value (In lakh Crore) |
|------------------------------|-----------------------------------|
| 1,175                        |                              3.33 |

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