**Executive Summary**
This document addresses Starred Question No. 149 raised in Lok Sabha concerning the legal guarantee for Minimum Support Price (MSP), to be answered on February 10th, 2026. It provides details on the government's policy on MSP, the procurement process, and the constitution of a committee to enhance MSP effectiveness. The document outlines the government's actions, including fixing MSPs, procurement mechanisms, and the establishment of a committee.
**Key Points / Main Content**
* **MSP Policy and Implementation:**
* The government fixes MSPs for 22 mandated agricultural crops annually based on recommendations from the Commission for Agricultural Costs & Prices (CACP), considering the views of State Governments and Central Ministries/Departments.
* The Union Budget for 2018-19 announced a principle to maintain MSPs at levels of at least 1.5 times the cost of production.
* The government increased MSPs for Kharif, Rabi, and commercial crops, ensuring a minimum return of 50% over the all-India weighted average cost of production from 2018-19 onwards.
* **Procurement Mechanisms:**
* Cereals and coarse cereals are procured through the Food Corporation of India (FCI) and other designated State Agencies.
* Pulses, oilseeds, and copra are procured under the Price Support Scheme, part of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA).
* Cotton and Jute are procured through the Cotton Corporation of India (CCI) and Jute Corporation of India (JCI).
* Procurement of Tur, Urad, and Masur is undertaken through Central Nodal Agencies under Mission for Aatmanirbharta in Pulses until 2030-31.
* Market intervention scheme for TOP crops (Tomato, Onion, and Potato) reimburses storage and transportation costs to nodal and state agencies.
* **Committee for MSP Enhancement:**
* A Committee was formed on July 12th, 2022, to make MSPs more effective and transparent.
* The committee will give suggestions on autonomy to CACP and measures to make it more scientific.
* It will also strengthen the Agricultural Marketing System to ensure higher value for farmers' produce.
* The committee has held 6 meetings, and various sub-committees have held 39 meetings.
* **Procurement Data:**
* Provides procurement and MSP value data for all MSP crops for the years 2022-23, 2023-24, and 2024-25.
**Impact Analysis**
**Stakeholder: Farmers**
* **Impact:**
* Farmers benefit from the fixed MSPs, ensuring a return of at least 1.5 times the cost of production.
* Remunerative prices for their produce, facilitated by procurement mechanisms.
* **Action Required:**
* To register under the Mission for Aatmanirbharta in Pulses (for Tur, Urad, and Masur) to ensure procurement.
* To engage with and benefit from the enhanced Agricultural Marketing System for better value of produce.
**Stakeholder: State Governments and Central Ministries/Departments**
* **Impact:**
* Required to provide input and views in determining MSPs through the Commission for Agricultural Costs & Prices (CACP).
* **Action Required:**
* Participate in the consultation process with the CACP to provide relevant insights and data for MSP determination.
* Implement and support the MSP policy through state agencies.
**Stakeholder: Food Corporation of India (FCI), Cotton Corporation of India (CCI), Jute Corporation of India (JCI), NAFED and NCCF**
* **Impact:**
* These agencies are responsible for procuring agricultural produce at MSP.
* **Action Required:**
* Efficiently procure grains, pulses, oilseeds, cotton and Jute to support the MSP policy.
Key Entities Referenced
Minimum Support Price (MSP): A price at which the government purchases crops from farmers, aiming to protect them from distress sales.
Commission for Agricultural Costs & Prices (CACP): Recommends MSPs for agricultural commodities.
Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA): Umbrella scheme for ensuring remunerative prices to farmers, including Price Support Scheme.
Food Corporation of India (FCI): Agency responsible for procuring, storing, and distributing food grains, particularly cereals and coarse grains.
Ministry of Agriculture & Farmers Welfare: The primary ministry responsible for issues related to agriculture and farmers' welfare.
O.I.H
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE & FARMERS WELFARE
DEPARTMENT OF AGRICULTURE & FARMERS WELFARE
LOK SABHA
STARRED QUESTION NO. 149
TO BE ANSWERED ON THE 10TH FEBRUARY, 2026
LEGAL GUARANTEE FOR MSP
*149. SHRI HANUMAN BENIWAL:
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 reviews the procurement at Minimum Support Price (MSP) in
various States, particularly in Rajasthan;
(b) if so, the details thereof and the lacunae identified during the last three years and the
corrective measures taken thereon;
(c) whether the Government proposes to enact a law to provide a legal guarantee for
procurement at MSP, if so, the time by which it is likely to be enacted and if not, the reasons
therefor;
(d) whether the Government has constituted a committee to bring MSP under a legal
framework; and
(e) if so, the details of the meetings held so far by the said committee, along with the
suggestions and recommendations made by the committee regarding the legal status of
MSP?
ANSWER
MINISTER OF AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी (SHRI SHIVRAJ SINGH CHOUHAN)
(a) to (e): A Statement is laid on the Table of the House.STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (e) OF LOK SABHA STARRED
QUESTION NO 149* DUE FOR ANSWER ON 10TH FEBRUARY, 2026 REGARDING
‘LEGAL GUARANTEE FOR MSP’
(a) & (b): Every year, Government fixes Minimum Support Prices (MSPs) for 22
mandated agricultural crops for the country as a whole, 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.
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, which has benefitted farmers across the country.
To realize the objectives of MSP Policy, after announcement of MSP, Government
procures cereals and coarse cereals through Food Corporation of India
(FCI) and other designated State Agencies to provide price support to the farmers.
Procurement of pulses, oilseeds and copra is done under Price Support Scheme under
Umbrella Scheme of Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA), in
consultation with the concerned State Government as and when market price of these
produce fall below the MSP. Procurement agencies under PM-AASHA Scheme are National
Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and National Co-
operative Consumers' Federation of India Ltd. (NCCF). Cotton and Jute are also procured
by Government at MSP through Cotton Corporation of India (CCI) and Jute Corporation of
India (JCI), respectively.
Increased MSP has benefitted farmers of the country including farmers of
Rajasthan, which is evident from details of all India procurement and MSP amount paid to
farmers during last three years, given below:
Procurement & MSP value of MSP Crops
All MSP Crops 2022-23 2023-24 2024-25
Total Procurement
1,118 1,089 1,223
(in lakh metric tonnes)
Total MSP Value
2.47 2.63 3.47
(in lakh crore)
To encourage domestic production & ensure remunerative prices to farmers,
procurement of Tur, Urad and Masur from the pre-registered farmers is undertaken as much
as offered by them through the Central Nodal Agencies under Mission for Aatmanirbharta in
Pulses till 2030-31.
From 2024-25 season, Government added another component under Market
intervention scheme for reimbursing the Storage and Transportation cost of TOP
crops (Tomato, Onion and Potato) to central nodal agencies & state designated agencies for
transporting them from the producing state to consuming states in the interest of the farmers.(c) to (e): To make Minimum Support Prices (MSPs) more effective and transparent, a
Committee has been constituted by the Government on 12thJuly 2022. The subject matter of
this 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.
*****