Lok Sabha Question No. 244 (UNSTARRED), answered on 2025-07-22
Subject: Policy of Fixing Minimum Support Price
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Dr. Amol Ramsing Kolhe, Shri Mohite Patil Dhairyasheel Rajsinh, Smt. Supriya Sule, Shri Sanjay Dina Patil, Prof. Varsha Eknath Gaikwad, Shri Nilesh Dnyandev Lanke, Shri Bajrang Manohar Sonwane, Shri Bhaskar Murlidhar Bhagare

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

## LOK SABHA UNSTARRED QUESTION NO. 244

TO BE ANSWERED ON THE 22 ND  JULY, 2025

## POLICY OF FIXING MINIMUM SUPPORT PRICE

244 . SHRI BHASKAR MURLIDHAR BHAGARE:

SHRI BAJRANG MANOHAR SONWANE:

PROF. VARSHA EKNATH GAIKWAD:

SMT. SUPRIYA SULE:

SHRI MOHITE PATIL DHAIRYASHEEL RAJSINH:

DR. AMOL RAMSING KOLHE:

SHRI SANJAY DINA PATIL:

SHRI NILESH DNYANDEV LANKE:

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

(a) whether Government has implemented the policy of fixing the Minimum Support Price (MSP) at one-and-a-half times the cost of production for various crops and if so, the details thereof;

- (b) the details of method and cost formula used for calculating MSP and whether it is uniform across all crops and States;
- (c) the details of MSP  fixed  during  the  last  five  years  and  how  it  compares  to correspondingcost of production, crop-wise and year-wise;

(d) the extent to which this MSP policy has benefitted farmers across the country including Maharashtra especially in terms of increased income and procurement levels;

- (e)  the  details  of  actual  procurement  under  MSP  for  key  crops  like  paddy,  wheat  and pulsesduring the last three years, with specific reference to Maharashtra;
- (f) whether farmers in various States, including Maharashtra have reported concerns that the  MSP declared  does  not  fully  reflect  their  input  costs  or  market  conditions  and  if  so, response of Government thereto; and
- (g) whether the Government proposes to expand the MSP coverage and procurementoperations for crops that are currently under-represented in the system and the timeline for the same?

## ANSWER

## THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE

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

- (a): Government  fixes  Minimum  Support  Prices  (MSPs)  for  22  mandated  agricultural crops  based  on  the  recommendations  of  Commission  for  Agricultural  Costs  &  Prices (CACP), after considering the views of State Governments and Central

Ministries/Departments concerned. The 22 mandated  crops include 14 Kharif crops viz. paddy, jowar, bajra, maize, ragi, tur (arhar), moong, urad, groundnut, soyabean, sunflower, sesamum,  nigerseed,  cotton  and  6  Rabi  crops  viz.  wheat,  barley,  gram,  masur  (lentil), rapeseed & mustard, safflower and two commercial crops viz. jute and copra.

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.

(b): While  recommending  the price policy, the CACP  considers  all costs in a comprehensive manner which 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  on  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.Further, The cost formula used for calculating MSP is uniform for all 22 mandated crops and states.

(c): The details of MSPs fixed, costs and Profit margin (MSP as a percentage of Cost) for Marketing Season 2021-22 to 2025-26 are given at Annexure .

(d) & (e): Increased MSP  has  benefited farmers of whole country including in Maharashtra which is evident from data given below for the procurement and MSP amount paid to farmers  for key crops such as Paddy, Wheat and Pulses between 2022-23 and 2024-25.

|                      | All India            | All India                | Maharashtra          | Maharashtra              |
|----------------------|----------------------|--------------------------|----------------------|--------------------------|
| CROPS                | Procurement (in LMT) | MSP Value (Rs. In Crore) | Procurement (in LMT) | MSP Value (Rs. In Crore) |
| Paddy                | 2,381.19             | 5,22,264.44              | 42.89                | 9,334.53                 |
| Wheat                | 828.42               | 1,89,039.84              | 0.00                 | 0.00                     |
| Pulses               | 49.11                | 31,276.55                | 9.12                 | 5,168.28                 |
| Total (All 22 Crops) | 3,382.64             | 8,43,445.57              | 70.07                | 31,989.60                |

(f) to (g): Every  year,  Government  fixes  Minimum  Support  Prices  (MSPs)  for  22 mandated agricultural crops for the country as a whole and not region specific and cost of production is considered on the basis of all India weighted average method.

For perishable agricultural and horticultural commodities including vegetables and fruits which are not covered under the MSP,Government implements Market Intervention Scheme  (MIS)  on  the  request  of  State/UT  Government  concerned.  The  objective  of intervention is to protect the growers of these commodities from making distress sale in the event of a bumper crop during the peak arrival period when the prices tend to fall below economic levels and cost of production.

## Annexure

## Annexure referred to in reply to part (C) of Lok Sabha Un-Starred Question No. 244 due for reply on 22.07.2025 Minimum Support Price (MSP) and Cost of Production(Marketing Season-Wise)  (Rs. per quintal)

| Sl. No.   | KHARIF CROPS           | KMS Cost   |   2021-22 MSP | KMS Cost   |   2022-23 MSP | KMS Cost   |   2023-24 MSP | KMS Cost   |   2024-25 MSP | KMS Cost   |   2025-26 MSP |
|-----------|------------------------|------------|---------------|------------|---------------|------------|---------------|------------|---------------|------------|---------------|
|           | PADDY(Common)          | 1293       |          1940 | 1360       |          2040 | 1455       |          2183 | 1533       |          2300 | 1579       |          2369 |
| 1         | PADDY (Grade A)^       | -          |          1960 | -          |          2060 | -          |          2203 | -          |          2320 | -          |          2389 |
| 2         | JOWAR (Hybrid)         | 1825       |          2738 | 1977       |          2970 | 2120       |          3180 | 2247       |          3371 | 2466       |          3699 |
| 2         | JOWAR (Maldandi)^      | -          |          2758 | -          |          2990 | -          |          3225 | -          |          3421 | -          |          3749 |
| 3         | BAJRA                  | 1213       |          2250 | 1268       |          2350 | 1371       |          2500 | 1485       |          2625 | 1703       |          2775 |
| 4         | RAGI                   | 2251       |          3377 | 2385       |          3578 | 2564       |          3846 | 2860       |          4290 | 3257       |          4886 |
| 5         | MAIZE                  | 1246       |          1870 | 1308       |          1962 | 1394       |          2090 | 1447       |          2225 | 1508       |          2400 |
| 6         | ARHAR(Tur)             | 3886       |          6300 | 4131       |          6600 | 4444       |          7000 | 4761       |          7550 | 5038       |          8000 |
| 7         | MOONG                  | 4850       |          7275 | 5167       |          7755 | 5705       |          8558 | 5788       |          8682 | 5845       |          8768 |
| 8         | URAD                   | 3816       |          6300 | 4155       |          6600 | 4592       |          6950 | 4883       |          7400 | 5114       |          7800 |
| 9         | COTTON (Medium Staple) | 3817       |          5726 | 4053       |          6080 | 4411       |          6620 | 4747       |          7121 | 5140       |          7710 |
|           | COTTON (Long Staple)   | -          |          6025 | -          |          6380 | -          |          7020 | -          |          7521 | -          |          8110 |
| 10        | GROUNDNUT              | 3699       |          5550 | 3873       |          5850 | 4251       |          6377 | 4522       |          6783 | 4842       |          7263 |
| 11        | SUNFLOWER SEED         | 4010       |          6015 | 4113       |          6400 | 4505       |          6760 | 4853       |          7280 | 5147       |          7721 |
| 12        | SOYABEAN               | 2633       |          3950 | 2805       |          4300 | 3029       |          4600 | 3261       |          4892 | 3552       |          5328 |
| 13        | SESAMUM                | 4871       |          7307 | 5220       |          7830 | 5755       |          8635 | 6178       |          9267 | 6564       |          9846 |
| 14        | NIGERSEED              | 4620       |          6930 | 4858       |          7287 | 5156       |          7734 | 5811       |          8717 | 6358       |          9537 |

Annexure (cont…)

| Sl. No.   | RABI CROPS       | RMS 2021-22   | RMS 2021-22   | RMS     | 2022-23   | RMS     | 2023-24   | RMS     | 2024-25   | RMS     | 2025-26   |
|-----------|------------------|---------------|---------------|---------|-----------|---------|-----------|---------|-----------|---------|-----------|
| Sl. No.   | RABI CROPS       | Cost          | MSP           | Cost    | MSP       | Cost    | MSP       | Cost    | MSP       | Cost    | MSP       |
| 15        | WHEAT            | 960           | 1975          | 1008    | 2015      | 1065    | 2125      | 1128    | 2275      | 1182    | 2425      |
| 16        | BARLEY           | 971           | 1600          | 1019    | 1635      | 1082    | 1735      | 1158    | 1850      | 1239    | 1980      |
| 17        | GRAM             | 2866          | 5100          | 3004    | 5230      | 3206    | 5335      | 3400    | 5440      | 3527    | 5650      |
| 18        | MASUR (LENTIL)   | 2864          | 5100          | 3079    | 5500      | 3239    | 6000      | 3405    | 6425      | 3537    | 6700      |
| 19        | RAPESEED/MUSTARD | 2415          | 4650          | 2523    | 5050      | 2670    | 5450      | 2855    | 5650      | 3011    | 5950      |
| 20        | SAFFLOWER        | 3551          | 5327          | 3627    | 5441      | 3765    | 5650      | 3807    | 5800      | 3960    | 5940      |
|           | COMMERCIAL CROPS | 2021-22       | 2021-22       | 2022-23 | 2022-23   | 2023-24 | 2023-24   | 2024-25 | 2024-25   | 2025-26 | 2025-26   |
| 21        | JUTE             | 2832          | 4500          | 2959    | 4750      | 3095    | 5050      | 3237    | 5335      | 3387    | 5650      |
|           |                  | 2021          | 2021          | 2022    | 2022      | 2023    | 2023      | 2024    | 2024      | 2025    | 2025      |
| 22        | COPRA (Milling)  | 6805          | 10335         | 6974    | 10590     | 7153    | 10860     | 7350    | 11160     | 7721    | 11582     |
| 22        | COPRA (Ball)^    |               | 10600         | -       | 11000     | -       | 11750     | -       | 12000     | -       | 12100     |

Note: KMS: Kharif Marketing Season, RMS: Rabi Marketing Season

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