Lok Sabha Question No. 451 (STARRED), answered on 2026-03-24
Subject: Price Stabilisation and MSP in Kerala
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Shafi Parambil

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

## LOK SABHA STARRED QUESTION NO. 451

TO BE ANSWERED ON THE 24 TH  MARCH, 2026

## PRICE STABILIZATION AND MSP IN KERALA

*451. SHRI SHAFI PARAMBIL:

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

(a) Whether the Government is aware of the decline in income of small and marginal farmers in Kerala due to price fluctuation of plantation crops such as rubber, coconut and spices; (b) The details of Minimum Support Price (MSP) and procurement mechanisms applicable to major crops grown in Kerala; (c)  Whether  the  Government  proposes  to  introduce  a  price  stabilization  mechanism  for plantation crops predominantly grown in Kerala; and (d) The funds allocated and released to Kerala under various Central agricultural support schemes during the last five years?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE क ृ िष और िकसान कʞाण मंũी (SHRI SHIVRAJ SINGH CHOUHAN)

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

## STATEMENT REFERRED TO IN RESPECT OF PARTS (a) TO (d) OF THE LOK SABHA STARRED  QUESTION  NO.  451  FOR  24 TH   MARCH,  2026  REGARDING  PRICE STABILIZATION AND MSP IN KERALA

(a):  As  per  information  received  from  Govt.  of  Kerala,  Price  fluctuations  are  generally observed in plantation crops such as rubber, coconut and spices but agricultural income in Kerala  has  shown  a  significant  increase  in  recent  years.  As  per  available  estimates,  the average monthly income of agricultural households in the State has increased by 61.79%, from ₹17,915 in 2019 to ₹28,984 at current prices. Income from crop production has also increased by 83.01%, from ₹3,638 to ₹6,658 during the same period.

No significant adverse price fluctuations have been observed in major spice crops such as black pepper and cardamom, as well as plantation crops like arecanut, in recent years. The prices have shown an increasing trend in the last five years except for the year 2021-22 when the auction price for cardamom (small) came down and 2022-23 & 2024-25 when the auction prices of arecanut came down slightly. Accordingly, no decline in farmers' income on this account has been reported. The annual average prices of these crops in Kerala during the last five years and the current year is given in Annexure-I.

(b):    Every  year,  Government  fixes  Minimum  Support  Prices  (MSPs)  for  22  mandated agricultural crops for the country as a whole including Kerela, based on the recommendations of Commission for Agricultural Costs & Prices (CACP), after considering the views of State Governments  and  Central  Ministries/Departments  concerned.  The  22  mandated  crops include  14  Kharif  crops  viz.  paddy,  jowar,  bajra,  maize,  ragi,  tur  (arhar),  moong,  urad, groundnut, soyabean, sunflower, sesamum, nigerseed, cotton and 6 Rabi crops viz. wheat, barley, gram, masur (lentil), rapeseed & mustard, safflower and two commercial crops viz. jute and copra.

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.

(c): The Government of India implements Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) with the objective of ensuring remunerative prices to farmers and stabilizing prices  of  essential  commodities  for consumers  in  all  states  including  Kerala.  The  scheme comprises of Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS) and Market Intervention Scheme (MIS), which are implemented by the Department of Agriculture & Farmers' Welfare (DA&FW), Ministry of Agriculture & Farmers' Welfare, while the Price Stabilization Fund (PSF) is implemented by the Department of Consumer Affairs. The details of the components of PM-AASHA and their mode of implementation are given below:

## (i) Price Support Scheme (PSS):

PSS is  implemented  at  the  request  of  State/UT  Governments  for  procurement  of  notified pulses, oilseeds and copra of prescribed Fair Average Quality (FAQ) at Minimum Support Price (MSP) on the request of the State Government through Central Nodal Agencies during the notified procurement period, when market prices fall below MSP. Procurement is generally limited to 25% of the All India Production of the respective commodity, with an initial ceiling of 25%  of  State  production,  extendable  subject  to  conditions.  Further,  to  promote  domestic production  and  ensure  remunerative  prices,  procurement  of  Tur,  Urad  and  Masur  is undertaken from pre-registered farmers, as per their offer, under the Mission for Aatmanirbharta in Pulses up to 2030-31.

## (ii) Price Deficiency Payment Scheme (PDPS):

PDPS provides for direct payment of the difference between MSP and the selling/modal price to  pre-registered  farmers  selling  oilseeds  of  prescribed  FAQ  standards  in  notified  market yards  through  a  transparent  auction  process.  The  scheme  does  not  involve  physical procurement on the request of the State Government. The Central Government bears the price deficiency up to 15% of MSP value (including administrative cost) for a quantity up to 40%  of  State  production.  Any  additional  quantity  beyond  this  limit  is  to  be  borne  by  the concerned State Government.

## (iii) Market Intervention Scheme (MIS):

MIS is implemented to provide remunerative prices to farmers for perishable agricultural and horticultural commodities not covered under MSP, in order to prevent distress sale during periods of excess production and price fall. The scheme is operational when market prices decline by at least 10% compared to the previous normal year. It is implemented at the request of  States/UTs,  which  share  the  losses  on  a  50:50  basis  (75:25  in  case  of  North-Eastern States). The scheme also includes provision for Price Differential Payment and support for transportation  and  storage  of  TOP  crops  (Tomato,  Onion  and  Potato)  from  producing  to consuming regions.

(d):  The  funds  to  states  under  the  various  schemes  of  Ministry  of  Agriculture  &  Farmers Welfare are provided on the basis of approved annual action plan. The details of Central assistance provided to Kerala under various agricultural support schemes during the last five years are given in Annexure-II.

## Annexure-I

Annual average price (Rs/kg)

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| Year    |   Black Pepper (Garbled)-Kochi |   Cardamom (Small)- Ungraded - Auction Price |   Arecanut (Dry) Kozhikode |
|---------|--------------------------------|----------------------------------------------|----------------------------|
| 2020-21 |                         342.31 |                                      1475.82 |                     286.58 |
| 2021-22 |                         464.39 |                                       934.94 |                     354    |
| 2022-23 |                         514.03 |                                      1088.51 |                     348.74 |
| 2023-24 |                         573.61 |                                      1764.46 |                     366.64 |
| 2024-25 |                         656.69 |                                      2572.52 |                     310.82 |
| 2025-26 |                         707.59 |                                      2490.3  |                     331.83 |

Details of funds allocated & released on schemes being implemented by the Department of Agriculture & Farmers' Welfare from 2021-22 to 2025-26 in respect of Kerala

(Rs. in crore)

| S. No.   | Name of Mission/Scheme                                                  | 2021-22                                                                 | 2021-22                                                                 | 2022-23                                                                 | 2022-23                                                                 | 2023-24                                                                 | 2023-24                                                                 | 2024-25                                                                 | 2024-25                                                                 | 2025-26                                                                 | 2025-26                                                                 |
|----------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|
| A        | Rastriya Krishi Vikas Yojna                                             | Alloc                                                                   | Rel                                                                     | Alloc                                                                   | Rel                                                                     | Alloc                                                                   | Rel                                                                     | Alloc                                                                   | Rel                                                                     | Alloc                                                                   | Rel                                                                     |
| 1        | Rastriya Krishi Vikas Yojna-DPR                                         | 63.11                                                                   | 50.44                                                                   | 55.74                                                                   | 27.88                                                                   | 30.69                                                                   | 14.24                                                                   | 30.69                                                                   | 17.36                                                                   | 74.18                                                                   | 37.09                                                                   |
| 2        | Sub- Mission on Agricultural Mechanization (SMAM)                       | 11.67                                                                   | 75.42                                                                   | 50.00                                                                   | 85.38                                                                   | 34.96                                                                   | 12.87                                                                   | 52.44                                                                   | 30.55                                                                   | 30.09                                                                   | 30.23                                                                   |
| 3        | Per Drop More Crop (PDMC)                                               | 0.00                                                                    | 0.00                                                                    | 10.00                                                                   | 0.00                                                                    | 5.45                                                                    | 0.32                                                                    | 6.00                                                                    | 1.68                                                                    | 87.38                                                                   | 22.69                                                                   |
| 4        | Soil Health & Fertility                                                 | 0.00                                                                    | 0.00                                                                    | 5.70                                                                    | 0.00                                                                    | 4.10                                                                    | 0.07                                                                    | 3.79                                                                    | 2.17                                                                    | 9.06                                                                    | 4.53                                                                    |
| 5        | Rain fed Area Development (RAD)                                         | 2.00                                                                    | 0.50                                                                    | 2.00                                                                    | 0.50                                                                    | 2.62                                                                    | 0.05                                                                    | 3.00                                                                    | 1.54                                                                    | 7.92                                                                    | 3.96                                                                    |
| 6        | Paramparagat Krishi Vikas Yojna (PKVY)                                  | 12.10                                                                   | 0.00                                                                    | 17.12                                                                   | 17.12                                                                   | 10.47                                                                   | 0.71                                                                    | 7.82                                                                    | 3.54                                                                    | 11.99                                                                   | 11.90                                                                   |
| 7        | Sub-Mission on Agroforestry (SMAF)*                                     | 0.60                                                                    | 0.42                                                                    | -                                                                       | -                                                                       | 0.51                                                                    | 0.00                                                                    | 0.50                                                                    | 0.28                                                                    | 3.26                                                                    | 1.63                                                                    |
|          | Total Rastriya Krishi Vikas Yojna (RKVY)                                | 89.48                                                                   | 126.78                                                                  | 140.56                                                                  | 130.88                                                                  | 88.80                                                                   | 28.26                                                                   | 104.24                                                                  | 57.12                                                                   | 223.88                                                                  | 112.03                                                                  |
| B        | Krishionnati Yojana                                                     | Krishionnati Yojana                                                     | Krishionnati Yojana                                                     | Krishionnati Yojana                                                     | Krishionnati Yojana                                                     | Krishionnati Yojana                                                     | Krishionnati Yojana                                                     | Krishionnati Yojana                                                     | Krishionnati Yojana                                                     | Krishionnati Yojana                                                     | Krishionnati Yojana                                                     |
| 1        | National Food Security Mission (NFSM)                                   | 0.64                                                                    | 0.16                                                                    | 0.42                                                                    | 0.10                                                                    | 0.66                                                                    | 0.00                                                                    | 0.66                                                                    | 0.41                                                                    | 0.64                                                                    | 0.06                                                                    |
| 2        | National Mission on Edible Oil - Oilpalm ( NMEO-OP)                     | 0.50                                                                    | 0.00                                                                    | 3.29                                                                    | 1.65                                                                    | 2.52                                                                    | 0.63                                                                    | 6.80                                                                    | 4.24                                                                    | 10.88                                                                   | 1.08                                                                    |
| 3        | National Mission on Edible Oil - Oilseeds (NMEO-OS)                     | 0.00                                                                    | 0.00                                                                    | 0.00                                                                    | 0.00                                                                    | 0.00                                                                    | 0.00                                                                    | 0.00                                                                    | 0.00                                                                    | 0.00                                                                    | 0.00                                                                    |
| 4        | Mission for Integrated Development of Horticulture (MIDH)               | 46.67                                                                   | 28.00                                                                   | 46.67                                                                   | 21.00                                                                   | 50.63                                                                   | 13.19                                                                   | 66.67                                                                   | 22.25                                                                   | 42.00                                                                   | 26.00                                                                   |
| 5        | Sub-Mission on Agriculture Extension (SMAE)                             | 17.72                                                                   | 13.29                                                                   | 13.77                                                                   | 13.77                                                                   | 10.90                                                                   | 10.90                                                                   | 11.00                                                                   | 11.00                                                                   | 20.63                                                                   | 16.50                                                                   |
| 6        | Sub-Mission on Seeds & Planting Material (SMSP)                         | 13.00                                                                   | 0.07                                                                    | 3.00                                                                    | 0.93                                                                    | 3.55                                                                    | 0.42                                                                    | 3.00                                                                    | 0.09                                                                    | 3.59                                                                    | 0.00                                                                    |
| 7        | National Bamboo Mission (NBM)                                           | 0.25                                                                    | 0.00                                                                    | 0.10                                                                    | 0.00                                                                    | 0.50                                                                    | 0.00                                                                    | 0.98                                                                    | 0.61                                                                    | 5.62                                                                    | 2.81                                                                    |
|          | Total Krishionnati Yojana                                               | 78.78                                                                   | 41.52                                                                   | 67.25                                                                   | 37.45                                                                   | 68.75                                                                   | 25.14                                                                   | 89.11                                                                   | 38.60                                                                   | 83.36                                                                   | 46.45                                                                   |
|          | * The scheme discontinued w.e.f. 1st April, 2022 & continued on 2023-24 | * The scheme discontinued w.e.f. 1st April, 2022 & continued on 2023-24 | * The scheme discontinued w.e.f. 1st April, 2022 & continued on 2023-24 | * The scheme discontinued w.e.f. 1st April, 2022 & continued on 2023-24 | * The scheme discontinued w.e.f. 1st April, 2022 & continued on 2023-24 | * The scheme discontinued w.e.f. 1st April, 2022 & continued on 2023-24 | * The scheme discontinued w.e.f. 1st April, 2022 & continued on 2023-24 | * The scheme discontinued w.e.f. 1st April, 2022 & continued on 2023-24 | * The scheme discontinued w.e.f. 1st April, 2022 & continued on 2023-24 | * The scheme discontinued w.e.f. 1st April, 2022 & continued on 2023-24 | * The scheme discontinued w.e.f. 1st April, 2022 & continued on 2023-24 |

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