Lok Sabha Question No. 159 (STARRED), answered on 2026-02-10
Subject: Rising Agricultural Input Cost
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Smt. Pratima Mondal

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

## LOK SABHA

## STARRED QUESTION NO. 159 TO BE ANSWERED ON THE 10 TH   FEBRUARY, 2026

## RISING AGRICULTURAL INPUTS COST

*159. SMT. PRATIMA MONDAL:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान क̵  याण मंũी

be pleased to state: (a) whether MSP procurement remains regionally skewed and crop-limited, leaving a majority of farmers outside effective price support; (b) the steps that are being taken to address rising fertilizer, seed, and pesticide costs that are eroding farm viability; and the evidence-based assessment that supports recent agri-marketing reforms and the

(c) manner in which these have improved price realization for farmers?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE क ृ िष एवं िकसान क̵  याण मंũी (SHRI SHIVRAJ SINGH CHOUHAN)

(a) to (c) : A statement is laid on the Table of the House.

## STATEMENT  IN  RESPECT  OF  PARTS  (a)  TO  (c)  OF  THE  LOK  SABHA  STARRED QUESTION NO. 159 FOR 10 TH FEBRUARY, 2026 REGARDING RISING AGRICULTURAL INPUT COST.

(a): Government  of  India  announces  Minimum  Support  Prices  (MSP)  for  22  major agricultural commodities of Fair Average Quality (FAQ) each year in both the Crop seasons on the basis of recommendations of Commission for Agricultural Costs & Prices (CACP), after  considering  the  views  of  State  Governments  and  Central  Ministries/Departments concerned & other relevant factors. In addition, MSP for toria and de-husked coconut is also fixed  on  the  basis  of  MSPs  of  rapeseed  &  mustard  and  copra  respectively.  While recommending  MSPs,  CACP  considers  important  factors  like  cost  of  production,  overall demand-supply conditions, domestic and international prices, inter-crop price, 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  and a minimum of 50 percent as the margin over cost of production in case of MSPs. Government also  extends  remunerative  price  to  farmers  through  its  various  interventions  schemes . Besides,  the  overall  market  also  responds  to  declaration  of  MSP  and  Government's procurement  operations  which  results  in  private  procurement  on  or  above  the  MSP  for various notified crops.

Government extends price support for paddy and wheat through the Food Corporation of India (FCI) and State Agencies which purchase at MSP, whatever food grains offered by farmers within the stipulated period & conforming to the specifications prescribed. Further, different types of nutri-cereals and maize are procured by State Governments in consultation with  FCI  to  the  extent  that  the  concerned  State  Government  may  utilise  the  same  for distribution  under  Targeted  Public  Distribution  System  (TPDS)  as  well  as  Other  Welfare Schemes (OWS).

Oilseeds,  pulses  and  copra  of  Fair  Average  Quality  (FAQ)  are  procured  from registered farmers under Price Support Scheme under Umbrella Scheme of Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA), as per its prescribed guidelines at MSP in consultation with the concerned State Government as and when market price of these produce fall below the MSP. Under PM-AASHA, States / UTs are offered to choose either Price  Support  Scheme  (PSS)  or  Price  Deficiency  Payment  Scheme  (PDPS)  in  a  given procurement season with respect to particular oilseeds crop for the entire State. Further, to encourage domestic production & ensure remunerative prices to farmers, procurement of Tur, Urad and Masur from the pre-registered farmers is undertaken as much as offered by them through the Central Nodal Agencies under Mission for Aatmanirbharta in Pulses till 2030-31.Cotton  and  Jute  are  also  procured  by  Government  at  MSP  through  Cotton Corporation of India (CCI) and Jute Corporation of India (JCI) respectively. If farmers get better price than notified MSP, they are free to sell their produce anywhere.

(b): The maximum retail price (MRP) of urea is constant since 2018. Similarly, MRP of Diammonium Phosphate (DAP) is constant for the last three years i.e. 2023-24 to 2025-26.

The actual expenditure on urea varies with fluctuation in price of natural gas and other raw material used for urea production and international import prices of urea. However, in order to keep the price constant, Government of India is bearing the subsidy on both the urea and Phosphatic & Potassic (P& K) fertilizers.

Government has taken several steps to make seeds available at affordable prices to  farmers,  which  includes,  financial  assistance  to  the  States/UTs  and  public  sector implementing agencies for seed-related activities including purchase of breeder seeds, distribution of quality seeds, strengthening seed infrastructure, National Seed Reseve and free  distribution  of  minikits  of  new  High  Yielding  Varieties  (HYVs)  of  pulses  and  Nutricereals  etc.These  interventions  enhance  productivity  and  reduce  cost  of  cultivation. Production of seeds in public sector is encouraged to ensure availability of quality seeds at affordable prices to farmers.

The pricing of pesticides does not come under the purview of Insecticides Act, 1968 and  Insecticides  Rules,  1971.  However,  to  provide  the  affordable  pesticides  to  farmers, Registration Committee (RC) also grants registration of pesticides under section 9(4) 'metoo' category.

(c): Agricultural Marketing is a state subject. However, in order to improve the market access to farmers,  create a competative marketing ecosystem and encourage investment in development of post-harvest management and marketing infrastructure with the objective of providing a competitive and remunerative prices to the farmers, Government  coordinates with states for adoption of reforms in agricultural marketing.

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