Parliament Question: Actual benefit from MSP procurement

GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE RAJYA SABHA UNSTARRED QUESTION NO. 814 TO BE ANSWERED ON THE 06/02/2026 ACTUAL BENEFIT FROM MSP PROCUREMENT 814. PROF. MANOJ KUMAR JHA: Will the minister of AGRICULTURE AND FARMERS WELFARE be pleased to state: (a) whether Government maintains data on the percentage of farmers who actually benefit from Minimum Support Price (MSP) procurement for various crops; (b) if so, the crop-wise percentage of farmers who sold their produce at MSP during last five marketing seasons; (c) whether it is a fact that according to research by ICAR-National Institute of Agricultural Economics & Policy Research, only 15 percent of paddy farmers and 9.6 percent of wheat farmers benefitted from MSP-backed procurement; and (d) whether Government has assessed the reasons why 85 percent of paddy farmers, over 90 percent of wheat farmers are unable to access MSP despite it being announced as a guaranteed support price? ANSWER THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE (SHRI RAMNATH THAKUR) (a): Government maintains data through its procuring agencies of farmers from whom agro produce is procured at MSP. Percentage of farmers who sell to state agencies is not maintained centrally (b): The numbers of benefitted farmers who sold their produce at MSP during last five marketing seasons is at Annexure-I. (c): The research conducted by ICAR –National Institute of Agricultural Economics & Policy research is based on Situation Assessment of Agricultural Households Survey of National Sample Survey office for reference year 2018-19.According to this household survey about 15 per cent of Paddy farmers and 9.6 percent of Wheat farmers (reporting sale) sold their output to procurement agencies. Kharif report (2024-25) of Commission for Agricultural Cost and Prices (CACP) has also reported that about 14% of paddy farmers benefitted from procurement during the year 2018-19. Over the years, proportion of farmers benefitting from MSP has improved. (d): MSP for various crops is announced factoring in cost of cultivation for Fair Average Quality (FAQ) grain or produce. Some of the produce is retained for self-consumption, while rest farmer is free to sell in open market if price realization is fair and remunerative, besides the sale of FAQ grade to government procuring agencies at MSP.Annexure –I The numbers of farmers who sold their produce at MPS during last five marketing seasons Crops 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 Paddy 1,31,12,458 1,26,79,650 1,24,97,077 1,06,58,233 1,18,58,507 95,58,018 Wheat 43,35,972 49,19,891 17,83,192 21,34,458 22,48,725 25,13,143 Coarse Grains 3,67,479 3,61,709 3,77,285 3,55,724 4,55,443 6,36,650 Cotton 20,51,000 - - 7,25,000 20,77,000 19,92,000 Oilseeds 1,59,407 77,962 4,83,640 6,56,669 17,28,452 12,35,525 Pulses 4,96,533 13,90,737 12,44,023 3,00,667 9,35,070 1,03,770 Note: During cotton season 2021-22 & 2022-23, cotton prices were ruling above MSP. Hence no MSP support required by farmers ***