Lok Sabha Question No. 4125 (UNSTARRED), answered on 2026-03-17
Subject: Impact of Trade Agreements on MSP
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Charanjit Singh Channi

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 4125

TO BE ANSWERED ON THE 17 TH  MARCH, 2026

## IMPACT OF TRADE AGREEMENTS ON MSP

## 4125. Shri Charanjit Singh Channi:

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

- (a) whether the Government is aware of concerns and protests expressed by farmers in Punjab regarding possible impacts of international trade arrangements on MSP-supported crops such as paddy, wheat and soybean;
- (b)  the  steps  taken  by  the  Government  to  safeguard  the  interests  of  farmers  and  ensure continued remunerative MSP support; and
- (c) whether any proposal is under consideration to address issues raised by farmers of Punjab, including matters relating to pending dues under food procurement operations and farm sector support measures?

## ANSWER

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

(a) to (c): Trade Agreements are negotiated with the aim to expand trade and investment and to provide  access  to  larger  international  markets  for  export  of  agricultural  products  and  enable farmers  to  realise  better  prices.  These  also  enable  adoption  of  modern  farming  practices  and techniques for quality production by farmers. Further, every year based on the recommendations of  the  Commission  for  Agricultural  Costs  and  Prices  (CACP),  the  Government  announces Minimum  Support  Price  (MSP)  for  mandated  22  crops  which  includes  paddy,  wheat  and soyabean. Govt also announces Fair and Remunerative Price (FRP) for sugarcane.

In addition, Government implements several schemes for promotion of agriculture across country including in Punjab, such as, PM KISAN Samman Nidhi, Rashtriya Krishi Vikas Yojana (RKVY), Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA), Mission for Integrated Horticulture Development (MIDH), National Mission on Edible Oils (NMEO)-Oilseeds, Mission for Aatmanirbharta  in  Pulses,    Krishi  Unnati Yojana  (KY),  Pradhanmantri  Krishi  Sinchayee Yojana and  Modified Interest Subvention Scheme (MISS) etc.

The Government regularly reviews issues raised by State Governments, including those from Punjab, relating to procurement operations and agricultural support measures. Foodgrains procured by State agencies for the Central Pool are reimbursed by the Central Government in accordance with the approved norms under the procurement policy. Matters relating to claims or dues  are  examined  in  consultation  with  the  concerned  State  Governments  and  implementing agencies, and appropriate action is taken as per the established procedures. The Government remains  committed  to  addressing  the  concerns  of  farmers  through  policy  support,  effective procurement operations, and continuous consultations with stakeholders. In the year 2024-25, procurement  from  Punjab  was  124.57  LMT  of  wheat  with  MSP  value  of  ₹28,338.63  crore, benefiting  9,30,543  farmers.  During  the  same  period,  116.13  LMT  of  rice  with  MSP  value  of ₹40,212.78 crore was also procured from Punjab, benefiting 9,04,471 farmers.

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