Lok Sabha Question No. 4279 (UNSTARRED), answered on 2025-08-19
Subject: Legal Guarantee for MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Amra Ram, Ms. Mahua Moitra

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

## LOK SABHA

## UNSTARRED QUESTION NO. 4279

TO BE ANSWERED ON THE 19 TH  AUGUST, 2025

## LEGAL GUARANTEE FOR MSP

4279.   SHRI AMRA RAM: MS MAHUA MOITRA:

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

(a)  whether the Government intends to introduce legislation providing a legal guarantee for Minimum  Support  Prices  (MSPs)  for  all  farmers  and  all  crops,  as  recommended  by  the National Commission on Farmers (Swaminathan Commission);

(b)  if so, the timeline for introducing legislation to guarantee MSP for all crops, ensuring fair remuneration;

(c)   if  not,  the  reasons  for  the  continued  reliance  on  procurement-driven  mechanisms  that currently cover less than 25% of agricultural produce nationally, with wide regional disparities; and

(d)  whether the Government has conducted assessments on how the absence of an MSP guarantee contributes to agrarian distress, indebtedness, and price exploitation by intermediaries, particularly in States like West Bengal where procurement remains minimal?

## ANSWER

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

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

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       |

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): National Institution for Transforming India (NITI) Aayog (erstwhile Planning Commission)  has  conducted  a  study  entitled  'Efficacy  of  minimum  support  prices  on farmers', 2016. The study covered 14 States, 36 Districts, 72 Blocks, 144 Villages and 1440 Households. The study is based on both the primary and secondary data. 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.

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