Home India Ministry of Agriculture and Farmers Welfare Parliament Question: Increase in the MSP...
Date: 2025-12-09 Category: Not Applicable State: Union Government Country: India

Parliament Question: Increase in the MSP

Issued by Ministry of Agriculture and Farmers Welfare · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document is the answer provided by the Minister of State for Agriculture and Farmers Welfare to Unstarred Question No. 1414 in the Lok Sabha, concerning the increase in Minimum Support Prices (MSPs) for various crops over the last 10 years. The response details the government's policy of setting MSPs for 22 mandated crops based on the recommendations of the Commission for Agricultural Costs & Prices (CACP) and includes an annexure comparing MSPs between 2015-16/2016-17 and 2025-26/2026-27. This was to be answered on December 9th, 2025. **Key Points / Main Content** * **MSP Determination and Policy:** * The Government fixes Minimum Support Prices (MSPs) for 22 mandated agricultural crops annually. * MSPs are based on the recommendations of the Commission for Agricultural Costs & Prices (CACP), considering views from State Governments and Central Ministries/Departments. * The Union Budget for 2018-19 established a principle to maintain MSPs at least one and a half times the cost of production. * Government has increased MSPs for Kharif, Rabi, and other commercial crops to provide a minimum return of 50% over the average cost of production from 2018-19 onwards. * **Data on Procurement and MSP Value:** * Total Procurement during 2024-25 (Crop Year): 1,223 LMT. * Total MSP Value paid to farmers during 2024-25: 3.47 Lakh Crore. * **Comparative MSP Data (Annexure):** * Lists the Minimum Support Prices (₹/quintal) for Kharif crops (2015-16 vs. 2025-26) and Rabi crops (2016-17 vs. 2026-27). **Impact Analysis** **Stakeholder: Farmers** * **Impact:** Farmers benefit from increased MSPs, ensuring remunerative prices for their produce and incentivizing crop diversification. * **Action Required:** No direct action required, but farmers should be aware of the increased MSP rates for their crops.

Key Entities Referenced

Minimum Support Price (MSP): Government policy instrument to support farmers by guaranteeing a minimum price for their crops. Commission for Agricultural Costs & Prices (CACP): Advisory body that recommends MSPs to the government based on cost of production and market factors. Ministry of Agriculture and Farmers Welfare: The primary ministry responsible for agricultural policy, including the implementation of MSP. Kharif Crops: Crops cultivated and harvested during the monsoon season (June to October) in India. Rabi Crops: Crops cultivated and harvested during the winter season (November to April) in India.
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GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE LOK SABHA UNSTARRED QUESTION NO. 1414 TO BE ANSWERED ON THE 09TH DECEMBER, 2025 INCREASE IN THE MSP 1414. SHRI EATALA RAJENDER 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 increase in the Minimum Support Price (MSP) for various items compared to the last 10 years as part of its efforts to boost domestic output and ensure remunerative prices to farmers in the kharif and rabi seasons aimed at ensuring remunerative prices for farmers and incentivising crop diversification? ANSWER 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): 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. The Union Budget for 2018-19 had announced the pre-determined principle to keep MSPs at levels of at least 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.The details of increased MSP in the year 2025-26 as compared to the year 2015-16 are given at Annexure. Increased MSP has benefited farmers of the country 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 2024-25 (Crop Year) are given as under: Total Procurement (In LMT) Total MSP Value (In Lakh Crore) 1,223 3.47Annexure Annexure referred to in reply to part (a) of Lok Sabha Untarred Question No. 1414 due for reply on 09.12.2025 Minimum Support Price (Marketing Season-wise) (₹/quintal) KMS KMS Commodities 2015-16 2025-26 KHARIF CROPS Paddy (Common) 1410 2369 Paddy (Grade ‘A’) 1450 2389 Jowar (Hybrid) 1570 3699 Jowar (Maldandi) 1590 3749 Bajra 1275 2775 Ragi 1650 4886 Maize 1325 2400 Arhar 4625 8000 Moong 4850 8768 Urad 4625 7800 Cotton 3800 7710 (Medium Staple) Cotton 4100 8110 (Long Staple) Groundnut 4030 7263 Sunflower Seed 3800 7721 Soyabean Yellow 2600 5328 Sesamum 4700 9846 Nigerseed 3650 9537 RMS RMS RABI CROPS 2016-17 2026-27 Wheat 1525 2585 Barley 1225 2150 Gram 3500 5875 Masur 3400 7000 Rapeseed & 3350 6200 mustard Safflower 3300 6540 KMS- Kharif Marketing Season RMS- Rabi Marketing Season ******

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