Lok Sabha Question No. 3931 (UNSTARRED), answered on 2025-03-25
Subject: Procurement of Agricultural Produce at MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri K Radhakrishnan

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

## LOK SABHA UNSTARRED QUESTION NO. 3931

TO BE ANSWERED ON THE 25 TH  MARCH, 2025

## PROCUREMENT OF AGRICULTURAL PRODUCE AT MSP

## 3931. SHRI K RADHAKRISHNAN :

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

- (a) the details of the percentage of total agricultural produce is actually procured at MSP and the reasons as to do many farmers still have to sell their crops below MSP; and
- (b) the steps taken to improve procurement infrastructure in States where farmers struggle to sell their produce at MSP?

## ANSWER

THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण राǛ मंũी ( SHRI RAM NATH THAKUR)

- (a) & (b): Every year, Government  fixes Minimum  Support  Price (MSP)  for 22 mandated agricultural 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.

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 Co-operative  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.

Government's price policy is to ensure remunerative prices to farmers by offering to procure  their  produce  at  MSP.  However,  farmers  are  free  to  sell  their  produce  to  the Government  procurement  agencies  at  MSP  or  in the open  market, whichever  is advantageous to them. The details of procurement of Kharif Crops, Rabi Crops and Jute & Copra for the year 2023-24 alongwith the percentage are given below in the Table.

## Procurement details of Kharif, Rabi and Jute & Copra

(figures in LMT)

| S. No.   | Crops        |   Procurement (2023-24) |   %of crop-wise procurement over total Procurement |
|----------|--------------|-------------------------|----------------------------------------------------|
| 1        | Kharif Crops |                  805.34 |                                              73.95 |
| 2        | Rabi Crops   |                  281.05 |                                              25.81 |
| 3        | Other Crops  |                    2.66 |                                               0.24 |
|          | Total        |                 1089.05 |                                             100    |

For making effective procurement at MSP by Government Agencies and providing maximum benefits of MSP to the farmers, procurement centers are opened by respective State  Government  Agencies  and  Central  Nodal  Agencies  like  National  Agricultural Cooperative Marketing Federation of India Ltd (NAFED), National Cooperative Consumers' Federation  of  India  Ltd.  (NCCF),  Food  Corporation  of  India  (FCI)  etc.  after  taking  into account  the  production,  marketable  surplus,  convenience  of  farmers  and  availability  of other  logistics  /  infrastructure  such  as  storage  and  transportation  etc.  In  addition  to  the existing Mandis and Depots/Godowns, a large number of the procurement centres are also set up at key points for the convenience of farmers.

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