**Executive Summary**
This document, dated December 12, 2025, details the government's policy regarding Minimum Support Prices (MSPs) for 22 mandated agricultural crops. It outlines the factors considered when setting MSPs and the mechanisms for procuring these crops to support farmers, as per a written reply by the Minister of State for Agriculture and Farmers Welfare in Rajya Sabha.
**Key Points / Main Content**
* **MSP Determination:**
* Government fixes MSPs annually for 22 agricultural crops based on the Commission for Agricultural Costs & Prices (CACP) recommendations.
* CACP considers cost of production, demand-supply, domestic/international prices, inter-crop price parity, trade terms, economic effects, and resource utilization, ensuring a minimum 50% margin over production cost.
* Inclusion of crops under MSP depends on shelf life, perishability, wide cultivation, mass consumption, and food security.
* **Procurement Mechanisms:**
* Cereals and coarse cereals are procured through the Food Corporation of India (FCI) and other designated State Agencies.
* Pulses, oilseeds, and copra are procured under the Price Support Scheme within the PM-AASHA umbrella, in coordination with State Governments, when market prices fall below MSP.
* PM-AASHA procurement agencies: NAFED and NCCF.
* Cotton and Jute procured through Cotton Corporation of India (CCI) and Jute Corporation of India (JCI).
* **Farmer Options:**
* Farmers can sell to government agencies or in the open market, whichever is more advantageous.
**Impact Analysis**
**Farmers**
* **Impact:** Benefit from price support through MSPs, helping to ensure a minimum return on their agricultural produce and protection against market fluctuations.
* **Action Required:** Assess market conditions and choose to sell produce to government agencies or in the open market based on which option yields a higher return.
**Government Agencies (FCI, NAFED, NCCF, CCI, JCI)**
* **Impact:** Responsible for procuring crops at MSP to support farmers, which requires resources and logistical coordination.
* **Action Required:** Procure designated crops as per the defined schemes and guidelines, ensuring efficient and timely procurement from farmers when market prices fall below MSP.
**State Governments**
* **Impact:** Required to coordinate with Central Government and agencies under PM-AASHA for the procurement of pulses, oilseeds and copra.
* **Action Required:** Must consult with government for the timely procurement of pulses, oilseeds and copra when market price falls below MSP.
Key Entities Referenced
Minimum Support Prices (MSPs): Government policy to fix prices for mandated agricultural crops.
Commission for Agricultural Costs & Prices (CACP): Recommends MSPs to the government based on various factors.
Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA): Umbrella scheme for procurement of pulses, oilseeds and copra at MSP.
Food Corporation of India (FCI): Procures cereals and coarse cereals to provide price support to farmers.
Ministry of Agriculture & Farmers Welfare: The ministry responsible for overseeing the agricultural sector and MSP policies.
Ministry of Agriculture & Farmers Welfare
Increasing Coverage of Crops under Minimum
Support Price
प्रव तथ: 12 DEC 2025 6:27PM by PIB Delhi
Every year, Government fixes Minimum Support Prices (MSPs) for 22 mandated agricultural crops based
on the recommendations of Commission for Agricultural Costs & Prices (CACP), after considering the
views of State Governments and Central Ministries/Departments concerned. While recommending MSP,
CACP considers important factors like cost of production, overall demand-supply conditions, domestic
and international prices, inter-crop price parity, 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.
However, inclusion of crops under MSP framework is dependent on several factors which include
relatively large shelf life, non- perishable, widely grown, item of mass consumption, essential for food
security, among others.
To realize the objectives of MSP Policy, after announcement of MSP, 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), in
consultation with the concerned State Government 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.
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.
This information was given by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath
Thakur in a written reply in Rajya Sabha today.
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RC/AR/1473
(रलीज़ आईडी: 2203209) आगंतुक पटल : 967
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