Implementation of Legally Guaranteed Minimum Support Price

**Executive Summary** This document, released on December 9, 2025, by PIB Delhi, concerns the implementation of legally guaranteed Minimum Support Prices (MSPs) for 22 mandated agricultural crops. The Government fixes MSPs annually based on the recommendations of the Commission for Agricultural Costs & Prices (CACP) and the views of State Governments and Central Ministries/Departments. The document outlines the procurement process for various crops and provides data on procurement and MSP amount paid to farmers during the 2024-25 crop year. **Key Points / Main Content** * **MSP Determination:** * The Government sets MSPs annually for 22 agricultural crops. * Determination is based on CACP recommendations and input from State Governments and Central Ministries/Departments. * **MSP Policy and Implementation:** * The Union Budget for 2018-19 established the principle of keeping MSPs at least 1.5 times the cost of production. * Increased MSPs have been implemented for Kharif, Rabi, and other Commercial crops since 2018-19. * A minimum return of 50 percent over the average cost of production is targeted. * **Procurement Mechanisms:** * Cereals and coarse cereals are procured through the Food Corporation of India (FCI) and designated State Agencies. * Pulses, oilseeds, and copra are procured under the Price Support Scheme of PM-AASHA, in consultation with State Governments. * Procurement agencies under PM-AASHA include NAFED and NCCF. * Cotton and Jute are procured through the Cotton Corporation of India (CCI) and Jute Corporation of India (JCI). * **Farmer Options:** * Farmers have the option to sell to government agencies or in the open market. * **2024-25 Procurement Data:** * Total Procurement: 1,223 LMT * Total MSP Value: 3.47 Lakh Crore **Impact Analysis** **Stakeholder:** Farmers * **Impact:** Benefits from legally guaranteed Minimum Support Prices (MSPs). * **Action Required:** Farmers must decide whether to sell their produce to government agencies or in the open market depending on which is more profitable for them. **Stakeholder:** State Governments * **Impact:** Consulted in the procurement of pulses, oilseeds, and copra under PM-AASHA. * **Action Required:** To engage with the Central Government agencies to ensure the efficient procurement of produce under the PM-AASHA scheme. **Stakeholder:** Central Ministries/Departments * **Impact:** Contribute to the determination of MSPs. * **Action Required:** To engage with the Central Government agencies to ensure the efficient procurement of produce under the PM-AASHA scheme.

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