Lok Sabha Question No. 1600 (UNSTARRED), answered on 2025-12-09
Subject: Implementation of Legally Guaranteed MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri E T Mohammed Basheer

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

## LOK SABHA UNSTARRED QUESTION NO. 1600

TO BE ANSWERED ON THE 09 TH  DECEMBER, 2025

## IMPLEMENTATION OF LEGALLY GUARANTEED MSP

1600. SHRI E T MOHAMMED BASHEER

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

- (a) the final decision and likely timeline for providing a legal guarantee for Minimum Support Price (MSP) to farmers;
- (b) the details of mechanisms that are being considered to ensure effective implementation and monitoring of a legally guaranteed MSP across different States and crops; and
- (c) the manner in which a legal MSP guarantee impact procurement systems, market prices and the financial burden on the exchequer?

## ANSWER

MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान कʞाण राǛमंũी (SHRI RAMNATH THAKUR)

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

To realize the objectives of MSP Policy, after announcement of MSP, 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.

Government  offers  to  procure  agricultural  crops  through  designated  procurement agencies and farmers have the option to sell their produce to the government agencies or in the open market whichever is advantageous to them.

Increased MSP has benefited farmers of the country 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 2024-25 (Crop Year) are given as under:

| Total Procurement (In LMT)   |   Total MSP Value (In Lakh Crore) |
|------------------------------|-----------------------------------|
| 1,223                        |                              3.47 |

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