**Policy Summary: Measures to Provide Remunerative Price for Agricultural Produce**
**Date:** August 1, 2025
**Source:** Ministry of Agriculture & Farmers Welfare, Government of India
**Overview:**
This policy outlines the Government of India's initiatives to ensure remunerative prices for agricultural produce. A core component is the annual setting of Minimum Support Prices (MSPs) for 22 mandated crops, based on recommendations from the Commission for Agricultural Costs & Prices (CACP) and in consultation with State Governments and relevant Central Ministries/Departments.
**Key Initiatives:**
The government supports farmers through various schemes and policy measures, including:
* **Pradhan Mantri Kisan Samman Nidhi (PM-KISAN):** Income support for small and marginal farmers.
* **Pradhan Mantri Fasal Bima Yojana (PMFBY)/Restructured Weather Based Crop Insurance Scheme (RWBCIS):** Crop insurance schemes to protect farmers against losses.
* **Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY):** Pension scheme for farmers.
* **Agriculture Infrastructure Fund (AIF):** Funding for development of agricultural infrastructure.
* **Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs):** Supporting collective farming and marketing.
* **Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PMAASHA):** A comprehensive scheme to ensure fair prices for farmers.
* **Modified Interest Subvention Scheme (MISS):** Providing subsidized credit to farmers.
* **National Bee Keeping and Honey Mission (NBHM):** Promoting beekeeping and honey production.
* **Agri Fund for Start-Ups Rural Enterprises' AgriSURE:** Funding for Start-Ups Rural Enterprises
* **National Mission on Natural Farming:** Promotes natural farming techniques.
* **Krishonnati Yojana & Rashtriya Krishi Vikas Yojana (RKVY):** Umbrella schemes for agricultural development.
**MSP Implementation:**
Since 2018-19, the government has implemented the principle of setting MSPs at levels of one and a half times the cost of production, ensuring a minimum return of 50% over the all-India weighted average cost of production.
**Procurement and MSP Value Data:**
The following data reflects procurement levels and MSP values paid to farmers:
| Year | Procurement (LMT) | MSP Value (Lakh Crore) |
| :------ | :---------------- | :--------------------- |
| 2022-23 | 1,118 | 2.47 |
| 2023-24 | 1,089 | 2.63 |
| 2024-25 | 1,175 | 3.33 |
*Data as of June 30, 2025*
**Statement By:**
Shri Ramnath Thakur, Minister of State for Agriculture and Farmers Welfare.
Key Entities Referenced
Ministry of Agriculture Farmers Welfare: The Indian government ministry responsible for agriculture and farmers' welfare.
Minimum Support Prices (MSPs): The price at which the government purchases crops from farmers to protect them from market fluctuations.
Commission for Agricultural Costs Prices (CACP): An advisory body that recommends MSPs to the government.
Pradhan Mantri Kisan Samman Nidhi (PMKISAN): An income support scheme for small and marginal farmers.
Pradhan Mantri Fasal Bima Yojana (PMFBY): A crop insurance scheme to provide financial support to farmers in case of crop failure.
Agriculture Infrastructure Fund (AIF): A fund to develop agriculture infrastructure in the country.
Rajya Sabha: The Upper House of the Indian Parliament.
Shri Ramnath Thakur: Minister of State for Agriculture and Farmers Welfare.
Ministry of Agriculture & Farmers Welfare
MEASURES TO PROVIDE REMUNERATIVE
PRICE FOR AGRICULTURAL PRODUCE
Posted On: 01 AUG 2025 4:37PM by PIB Delhi
Every year, Government fixes Minimum Support Prices (MSPs) for 22 mandated agricultural crops for the
country as a whole based on the recommendations of Commission for Agricultural Costs & Prices (CACP),
after considering the views of State Governments and Central Ministries/Departments concerned.
Increased MSP has benefited farmers which are evident from data of procurement and MSP amount paid to
the farmers. The details of procurement and MSP amount paid to farmers during last three years including
current year are given at Annexure.
Agriculture is a state subject & all the centrally sponsored schemes are implemented through States/ UTs
concerned. Government of India supports the States through appropriate policy measures and budgetary
allocation for schemes for farmers welfare.
For benefits of farmers, Government has taken several initiatives which include following:
(i) Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
(ii) Pradhan Mantri Fasal Bima Yojana (PMFBY)/Restructured Weather Based Crop Insurance Scheme
(RWBCIS)
(iii) Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY)
(iv) Agriculture Infrastructure Fund (AIF)
(v) Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)
(vi) Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)
(vii) Modified Interest Subvention Scheme (MISS)
(viii) National Bee Keeping and Honey Mission (NBHM)
(ix) Agri Fund for Start-Ups & Rural Enterprises' (AgriSURE)
(x) National Mission on Natural Farming
(xi) Krishonnati Yojana
(xii)Rashtriya Krishi Vikas Yojana (RKVY)
The Union Budget for 2018-19 had announced the pre-determined principle to keep MSPs at levels of one and
half times of the cost of production. Accordingly, Government had increased MSPs for all mandated Kharif,
Rabi and other Commercial crops with a minimum return of 50 percent over all India weighted average cost
of production from year 2018-19 onwards which benefitted farmers of whole country.
Annexure
Annexure referred to in reply to part (a) of Rajya Sabha Untarred Question No. 1466 due for reply on
01.08.2025
Procurement & MSP value of MSP CropsYEAR 2022-23 2023-24 2024-25*
Procurement (In LMT) 1,118 1,089 1,175
MSP Value (In lakh Crore) 2.47 2.63 3.33
*As on 30.06.2025
This information was given by Minister of State for Agriculture and Farmers Welfare, Shri Ramnath Thakur
in a written reply in Rajya Sabha today.
******
RC/ KSR/AR
(Release ID: 2151360)