This document summarizes the Indian government's response to questions raised in Lok Sabha regarding the Minimum Support Price (MSP) for agricultural crops. The Ministry of Agriculture and Farmers Welfare (MoAFW) provides MSP information on its website (https://agriwelfare.gov.in). MSPs are fixed annually for 22 mandated crops based on recommendations from the Commission for Agricultural Costs and Prices (CACP), factoring in input from state governments and central ministries/departments.
The government addresses the M.S. Swaminathan Report's recommendation for MSPs to be at least 50% above the weighted average cost of production by stating that the Union Budget for 2018-19 announced a policy to maintain MSPs at a minimum of 1.5 times the cost of production. This principle has been applied to all mandated Kharif, Rabi, and other commercial crops.
To enhance the effectiveness and transparency of MSPs, a committee was formed on July 12, 2022. This committee is tasked with exploring greater autonomy for the CACP, improving the scientific basis for MSP determination, and strengthening the agricultural marketing system to ensure remunerative prices for farmers by leveraging domestic and export opportunities. The document also addresses the matter of providing legal guarantee for MSP.
Key Entities Referenced
Ministry of Agriculture and Farmers Welfare: The Indian government ministry responsible for agriculture and farmers' welfare.
Minimum Support Price (MSP): A form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices.
M.S. Swaminathan Report: Report by the National Commission on Farmers (NCF) under the Chairmanship of Prof. M.S. Swaminathan, which recommended that MSP should be at least 50 percent more than the weighted average cost of production.
Commission for Agricultural Costs and Prices (CACP): An advisory body that recommends minimum support prices (MSPs) for agricultural commodities to the Indian government.
National Commission on Farmers (NCF): A commission constituted in 2004 under the Chairmanship of Prof. M.S. Swaminathan to address the issues of farmers in India.
SHRI VISHNU DAYAL RAM: Member of Parliament who raised a question in Lok Sabha regarding MSP.
Union Budget for 2018-19: The annual financial statement presented by the Government of India, which included an announcement to keep MSP at a level of minimum one and half times of the cost of production.
Lok Sabha: The lower house of the Parliament of India.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 3856
TO BE ANSWERED ON THE 12TH AUGUST, 2025
ACCESS OF MSP
3856. SHRI VISHNU DAYAL RAM:
SMT. ROOPKUMARI CHOUDHARY:
SHRI MUKESH RAJPUT:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी
be pleased to state:
(a) the details of process whereby farmers can access information related to the Minimum
Support Price (MSP);
(b) whether the recommendation of the M.S. Swaminathan Report to determine MSP with at
least fifty percent profit over the cost of production is being followed;
(c) the reasons for not implementing all the recommendations of the Swaminathan Committee;
(d) the details of steps taken to fix MSP as per the said report;
(e) whether there is any legal guarantee for the provision of MSP; and
(f) if not, the steps taken to ensure a legal guarantee of the MSP for farmers?
ANSWER
THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण रा(cid:475)मं(cid:361)ी (SHRI RAMNATH THAKUR)
(a): The details of information related to the Minimum Support Price (MSP) are available on the
website of the Ministry of Agriculture & Farmers Welfare (MoA&FW) which can be accessed
at: https://agriwelfare.gov.in/.
(b) to (d): Every year, Government fixes Minimum Support Prices (MSPs) for 22 mandated
agricultural crops based on the recommendations of the Commission for Agricultural Costs &
Prices (CACP), after considering the views of the State Governments and Central
Ministries/Departments concerned.
National Commission on Farmers (NCF), constituted under the Chairmanship of
Prof. M.S. Swaminathan in 2004, inter alia, recommended that Minimum Support Price
(MSPs) should be at least 50 percent more than the weighted average cost of production.
To give effect to this recommendation, Government, in its Union Budget for 2018-19, had
made an announcement to keep MSP at a level of minimum one and half times of the cost of
production as a pre-determined principle. Accordingly, MSPs for all mandated Kharif, Rabi and
other commercial crops have been fixed with a margin of at least 50 percent over weighted
average cost of production.
(e) & (f): To make Minimum Support Prices (MSPs) more effective and transparent, a
committee has been constituted on 12thJuly 2022. The subject matter of the committee also
include (i) Suggestions on practicality to give more autonomy to Commission for Agricultural
Costs and Prices (CACP) and measures to make it more scientific, and (ii) To strengthen the
Agricultural Marketing System as per the changing requirements of the country to ensure
higher value to the farmers through remunerative prices of their produce by taking advantage
of the domestic and export opportunities.
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