Lok Sabha Question No. 5187 (UNSTARRED), answered on 2026-03-24
Subject: MSP for Small and Marginal Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Dharmendra Yadav

## GOVERNMENT OF INDIA

## MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 5187

TO BE ANSWERED ON THE 24 TH  MARCH, 2026

## MSP FOR SMALL AND MARGINAL FARMERS

5187. SHRI DHARMENDRA YADAV:

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

(a) whether a majority of small and marginal farmers are not able to avail the benefit of MSP; and

(b) if so, the special steps being taken by the Government in this regard?

## ANSWER

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

(a)  &  (b):  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.

While  recommending  MSPs,  CACP  considers  important  factors  like  cost  of production, overall demand-supply conditions, domestic and international prices, intercrop 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.

Government, in  its  Union  Budget  for  2018-19,  had  made  an  announcement  to keep MSP at a level of minimum one and half times of the cost of production as a predetermined  principle.  Accordingly,  MSPs  for  all  mandated  Kharif,Rabi  and  other commercial crops have been fixed with a margin of at least 50 percent over weighted average cost of production.

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), on the request of the concerned State Government as per the guidelines 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.

Every  farmer,  including  small  and  marginal  farmers  can  register  on  the  State Food  Procurement  Portal  and  can  sell  agriculture  produce  on  MSP.  The  small  and marginal farmers are given priority during issue of token. One Nation, One MSP through Direct  Benefit  Transfer  (DBT)  has  been  implemented  across  the  country  payment  of MSP is made directly to farmers bank account.

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 2004-2014 and 2014-2026 (upto February 2026) are given as under:

| 2004-2014                  | 2004-2014                       | 2014-2026 (upto February 2026)   | 2014-2026 (upto February 2026)   |
|----------------------------|---------------------------------|----------------------------------|----------------------------------|
| Total Procurement (In LMT) | Total MSP Value (In Lakh Crore) | Total Procurement (In LMT)       | Total MSP Value (In Lakh Crore)  |
| 6,987                      | 7.41                            | 12,292                           | 26.32                            |

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