Parliament Question: Impact of Trade Agreements on MSP

GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE LOK SABHA UNSTARRED QUESTION NO. 4125 TO BE ANSWERED ON THE 17TH MARCH, 2026 IMPACT OF TRADE AGREEMENTS ON MSP 4125. Shri Charanjit Singh Channi: Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी be pleased to state: (a) whether the Government is aware of concerns and protests expressed by farmers in Punjab regarding possible impacts of international trade arrangements on MSP-supported crops such as paddy, wheat and soybean; (b) the steps taken by the Government to safeguard the interests of farmers and ensure continued remunerative MSP support; and (c) whether any proposal is under consideration to address issues raised by farmers of Punjab, including matters relating to pending dues under food procurement operations and farm sector support measures? 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 BHAGIRATH CHOUDHARY) (a) to (c): Trade Agreements are negotiated with the aim to expand trade and investment and to provide access to larger international markets for export of agricultural products and enable farmers to realise better prices. These also enable adoption of modern farming practices and techniques for quality production by farmers. Further, every year based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), the Government announces Minimum Support Price (MSP) for mandated 22 crops which includes paddy, wheat and soyabean. Govt also announces Fair and Remunerative Price (FRP) for sugarcane. In addition, Government implements several schemes for promotion of agriculture across country including in Punjab, such as, PM KISAN Samman Nidhi, Rashtriya Krishi Vikas Yojana (RKVY), Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA), Mission for Integrated Horticulture Development (MIDH), National Mission on Edible Oils (NMEO)-Oilseeds, Mission for Aatmanirbharta in Pulses, Krishi Unnati Yojana (KY), Pradhanmantri Krishi Sinchayee Yojana and Modified Interest Subvention Scheme (MISS) etc. The Government regularly reviews issues raised by State Governments, including those from Punjab, relating to procurement operations and agricultural support measures. Foodgrains procured by State agencies for the Central Pool are reimbursed by the Central Government in accordance with the approved norms under the procurement policy. Matters relating to claims or dues are examined in consultation with the concerned State Governments and implementing agencies, and appropriate action is taken as per the established procedures. The Government remains committed to addressing the concerns of farmers through policy support, effective procurement operations, and continuous consultations with stakeholders. In the year 2024–25, procurement from Punjab was 124.57 LMT of wheat with MSP value of ₹28,338.63 crore, benefiting 9,30,543 farmers. During the same period, 116.13 LMT of rice with MSP value of ₹40,212.78 crore was also procured from Punjab, benefiting 9,04,471 farmers. *****