This policy addresses concerns raised in Lok Sabha Starred Question No. 30 regarding the Minimum Support Price (MSP) for agricultural crops. The government currently sets MSPs for 22 mandated crops based on recommendations from the Commission for Agricultural Costs and Prices (CACP), considering input from state governments and central ministries. To enhance the effectiveness and transparency of the MSP system, a committee was formed on July 12, 2022. This committee is tasked with exploring greater autonomy for the CACP and ways to make its processes more scientific. It is also charged with strengthening the agricultural marketing system to improve farmer returns through domestic and export opportunities. As of the date of the statement (July 22, 2025), the committee has held six meetings, with its subcommittees holding an additional 39 meetings.
Regarding perishable commodities like fruits and vegetables not covered by MSP, the government utilizes the Market Intervention Scheme (MIS) upon request from state/UT governments. The MIS aims to protect growers from distress sales during periods of oversupply when prices fall below economic levels and the cost of production.
The government also sets MSPs for three commercial crops—Jute, Copra, and Cotton—as part of the 22 mandated crops, which helps to stabilize market prices and benefit farmers.
Key Entities Referenced
Minimum Support Price: A price fixed by the Government of India to protect farmers from distress sales. It acts as a safety net ensuring farmers receive a minimum price for their crops.
Commission for Agricultural Costs and Prices: An advisory body that recommends Minimum Support Prices (MSP) for various crops to the Government of India.
Ministry of Agriculture & Farmers Welfare: The Indian government ministry responsible for policies and programs related to agriculture and the welfare of farmers.
Lok Sabha: The lower house of the Parliament of India, where the starred question regarding MSP was raised.
Market Intervention Scheme: A scheme implemented by the Government of India to protect growers of perishable agricultural and horticultural commodities from distress sales during periods of bumper crop and low prices.
Jute: A commercial crop for which the Government fixes Minimum Support Price.
Copra: A commercial crop for which the Government fixes Minimum Support Price.
Cotton: A commercial crop for which the Government fixes Minimum Support Price.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE & FARMERS WELFARE
DEPARTMENT OF AGRICULTURE & FARMERS WELFARE
LOK SABHA
STARRED QUESTION NO. 30
TO BE ANSWERED ON 22ND JULY, 2025
LAW TO ENSURE MSP
*30: SHRI P V MIDHUN REDDY:
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 plans to bring in a law to ensure that the farmers receive the
Minimum Support Price (MSP) for their crops as set by the Commission for Agricultural Costs
and Prices (CACP);
(b) if so, the details thereof;
(c) whether the Ministry plans to announce MSP for vegetables and fruits, that are hitherto
excluded from the existing regime, if so, the details thereof; and
(d) whether the ministry plans to bring in a plan for stabilizing prices of export oriented
commercial crops, if so, the details thereof?
ANSWER
THE MINISTER OF AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी (SHRI SHIVRAJ SINGH CHOUHAN)
(a) to (d): A Statement is laid on the Table of the House.STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (d) OF LOK SABHA
STARRED QUESTION NO. 30 DUE FOR ANSWER ON 22ND JULY, 2025 REGARDING
‘LAW TO ENSURE MSP”.
(a) & (b): Every year, Government fixes Minimum Support Price (MSP) for 22
mandated agricultural crops based on the recommendations of Commission for
Agricultural Costs & Prices (CACP), after considering the views of State Governments
and Central Ministries/Departments concerned.
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. The meetings of this
committee are being organized regularly and till date, 6 meetings have been held.
Additionally, 39 meetings of various sub-committees have also been held.
(c): For perishable agricultural and horticultural commodities including vegetables and
fruits which are not covered under the MSP, Government implements Market Intervention
Scheme (MIS) on the request of State/UT Government concerned. The objective of
intervention is to protect the growers of these commodities from making distress sale in
the event of a bumper crop during the peak arrival period when the prices tend to fall
below economic levels and cost of production.
(d): Every year, Government fixes Minimum Support Price (MSP) for 22 mandated
agricultural crops including three commercial crops (Jute, Copra and Cotton) which not
only benefit famers but also help stabilizing market prices of these crops.
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