**Executive Summary**
The Government strengthens farmer income support through Minimum Support Prices (MSP) and procurement. The government fixes MSPs for 22 mandated crops based on CACP recommendations, ensuring MSPs are at least 1.5 times the cost of production, with a minimum 50% return over the all-India weighted average cost of production since 2018-19. Data for MSP related procurement is reported for the 2024-25 crop year.
**Key Points / Main Content**
* **MSP Determination:**
* MSPs are fixed annually for 22 mandated agricultural crops.
* Based on recommendations from the Commission for Agricultural Costs & Prices (CACP) and the views of State Governments and Central Ministries/Departments.
* **MSP Levels:**
* MSPs are set at levels of at least 1.5 times the cost of production.
* Government has increased MSPs for all mandated crops to ensure a minimum 50% return.
* **Procurement Processes:**
* The government procures agricultural crops through designated agencies, but farmers can choose to sell in the open market if it's more advantageous.
* Cereals and coarse cereals are procured through the Food Corporation of India (FCI) and other designated State Agencies.
* Pulses, oilseeds, and copra procurement occurs under the Price Support Scheme of PM-AASHA (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan).
* NAFED and NCCF are procurement agencies under the PM-AASHA Scheme.
* Cotton and Jute are procured by the Cotton Corporation of India (CCI) and the Jute Corporation of India (JCI), respectively.
* **Procurement Figures (2024-25 Crop Year):**
* Total Procurement: 1,223 LMT (Lakh Metric Tonnes).
* Total MSP Value: 3.47 Lakh Crore.
* **Government Initiatives for Farmer Welfare:**
* National Food Security and Nutrition Mission (NFSNM)
* National Mission on Edible Oils (NMEO)-Oil Palm
* National Mission on Edible Oils (NMEO)-Oilseeds
* National Mission on Natural Farming (NMNF)
* Paramparagat Krishi Vikas Yojana (PKVY)
* Soil Health & Fertility (SH&F)
* Rainfed Area Development (RAD)
* Agroforestry
* Crop Diversification Programme (CDP)
* Sub-Mission on Agriculture Extension (SMAE)
* Sub-Mission on Seed and Planting Material (SMSP)
* Mission for Integrated Development of Horticulture (MIDH)
* National Bamboo Mission
* National Bee Keeping and Honey Mission (NBHM)
* Mission Organic Value Chain Development for North Eastern Region
* Per Drop More Crop (PDMC)
* Integrated Scheme for Agriculture Marketing (ISAM)
* Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
* Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY)
* Pradhan Mantri Fasal Bima Yojana (PMFBY)/ Restructured Weather Based Crop Insurance Scheme (RWBCIS)
* Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA)
* Modified Interest Subvention Scheme (MISS)
* Agriculture Infrastructure Fund (AIF)
* Formation and Promotion of 10,000 new Farmer Producers Organizations (FPOs)
* Agri Fund for Start-Ups & Rural Enterprises (AgriSURE)
* Sub-Mission on Agriculture Mechanization (SMAM)
* Digital Agriculture Mission
**Impact Analysis**
**Stakeholder: Farmers**
**Impact**
* Farmers benefit from guaranteed MSPs and procurement options, supporting their income.
* Initiatives and Schemes aim to increase production and improve income through agriculture.
**Action Required**
* Farmers should consider selling to government agencies if it is more advantageous than the open market.
* Farmers should be aware of and utilize the various schemes to increase yields.
Key Entities Referenced
Minimum Support Prices (MSPs): Government's fixed prices for agricultural crops to support farmers.
Commission for Agricultural Costs & Prices (CACP): The body that recommends MSPs to the government.
Ministry of Agriculture & Farmers Welfare: Primary ministry responsible for the policy.
Pradhan MantriAnnadataAaySanrakshanAbhiyan (PM-AASHA): Umbrella scheme for procurement of pulses, oilseeds, and copra.
Food Corporation of India(FCI): Government agency that procures cereals and coarse cereals.
Ministry of Agriculture & Farmers Welfare
Government Strengthens Farmer Income
Support Through MSP and Procurement
प्रव तथ: 16 DEC 2025 5:53PM by PIB Delhi
Every year, Government fixes Minimum Support Prices (MSPs) for 22mandated agricultural crops based on
the recommendations of the Commission for AgriculturalCosts & Prices (CACP), after considering the
views of the State Governments and CentralMinistries/Departments concerned.
The Union Budget for 2018-19 had announced the pre-determined principle to keepMSPs at levels
of at least one and half times of the cost of production. Accordingly, Governmenthad increased MSPs for all
mandated Kharif, Rabi and other Commercial crops with a minimumreturn of 50 percent over all India
weighted average cost of production from year 2018-19onwards.
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.
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 underUmbrella Scheme of
Pradhan MantriAnnadataAaySanrakshanAbhiyan (PM-AASHA), inconsultation with the concerned State
Government as and when market price of these produce fall below the MSP. Procurement agencies under
PM-AASHA Scheme are NationalAgricultural Cooperative Marketing Federation of India Ltd (NAFED)
and National Co-operative Consumers' Federation of India Ltd. (NCCF). Cotton and Jute are also procured
byGovernment at MSP through Cotton Corporation of India (CCI) and Jute Corporation of India(JCI),
respectively.
Increased MSP has benefited farmers of the country which are evident from data ofprocurement
and MSP amount paid to the farmers. The details of procurement and MSP amountpaid 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
Government of lndia supplements the efforts of States through appropriate policy measures and budgetary
support and various schemes/ programmes. The importantinitiatives of the Government of India meant for
the Welfare of farmersby increasing production, remunerative returns and income support to farmers aregiven below.
1. National Food Security and Nutrition Mission (NFSNM)
2. National Mission on Edible Oils (NMEO)-Oil Palm
3. National Mission on Edible Oils (NMEO)-Oilseeds
4. National Mission on Natural Farming (NMNF)
5. ParamparagatKrishiVikasYojana (PKVY)
6. Soil Health & Fertility (SH&F)
7. Rainfed Area Development (RAD)
8. Agroforestry
9. Crop Diversification Programme (CDP)
10. Sub-Mission on Agriculture Extension (SMAE)
11. Sub-Mission on Seed and Planting Material (SMSP)
12. Mission for Integrated Development of Horticulture (MIDH)
13. National Bamboo Mission
14. National Bee Keeping and Honey Mission (NBHM)
15. Mission Organic Value Chain Development for North Eastern Region
16. Per Drop More Crop (PDMC)
17. Integrated Scheme for Agriculture Marketing (ISAM)
18. Pradhan MantriKisanSammanNidhi (PM-KISAN)
19. Pradhan MantriKisanMaanDhanYojana (PM-KMY)
20. Pradhan MantriFasalBimaYojana (PMFBY)/ Restructured Weather Based Crop Insurance Scheme
(RWBCIS)
21. Pradhan MantriAnnadataAaySanraksHanAbhiyan (PM-AASHA)
22. Modified Interest Subvention Scheme (MISS)
23. Agriculture Infrastructure Fund (AIF)
24. Formation and Promotion of 10,000 new Farmer Producers Organizations (FPOs)
25. Agri Fund for Start-Ups & Rural Enterprises (AgriSURE)
26. Sub-Mission on Agriculture Mechanization (SMAM)
27. Digital Agriculture Mission
This information was given by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath
Thakur in a written reply in Lok Sabha today.
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