Executive Summary:
The document addresses Lok Sabha Unstarred Question No. 2674 regarding the legal status of Minimum Support Price (MSP) and the implementation of Swaminathan Commission recommendations. It outlines the government's current practices for fixing MSPs, the steps taken to make MSPs more effective, and the implementation of the Swaminathan Commission's action points. The information provided is current as of June 30, 2025, with procurement data up to that date.
Key Points / Main Content:
Minimum Support Price (MSP):
* The government fixes MSPs for 22 mandated agricultural crops annually, based on recommendations from the Commission for Agricultural Costs and Prices (CACP) and considering input from State Governments and Central Ministries/Departments.
* Since 2018-19, MSPs have been set at levels of one and a half times the cost of production, providing a minimum return of 50% over the all-India weighted average cost of production.
* A committee was formed on July 12, 2022, to make MSPs more effective and transparent.
* The committee's mandate includes suggesting ways to give more autonomy to CACP and strengthen the agricultural marketing system. As of the report, the committee has held 6 meetings, and various subcommittees have held 39 meetings.
Swaminathan Commission Recommendations:
* An Inter-Ministerial Committee (IMC) was formed in 2007, recommending 201 Action Points based on the Swaminathan Commission's report.
* All 201 Action Points have been implemented by the Government.
Procurement and MSP Value:
* The document includes an annexure detailing procurement and MSP value of crops.
* Total procurement for all MSP crops ranged from 1,083 to 1,368 LMT between 2020-21 and 2024-25.
* Total MSP value ranged from 2.25 to 3.33 lakh Crore during the same period.
Impact Analysis:
Farmers:
* Impact: Benefit from increased MSPs (at least 1.5 times the cost of production).
* Action Required: Monitor MSP announcements and utilize procurement opportunities.
State Governments and Central Ministries/Departments:
* Impact: Provide input on MSP recommendations.
* Action Required: Participate in consultations and provide relevant data to the CACP.
Commission for Agricultural Costs and Prices (CACP):
* Impact: To be given more autonomy and operate more scientifically.
* Action Required: Participate in the committee's meetings and strengthen the agricultural marketing system.
Key Entities Referenced
Minimum Support Price: A price fixed by the Government of India to protect farmers from distress sales.
Lok Sabha: The lower house of the Parliament of India, where the unstarred question was raised.
Ministry of Agriculture and Farmers Welfare: The Indian government ministry responsible for agriculture and farmers' welfare.
Commission for Agricultural Costs and Prices: An advisory body that recommends minimum support prices for agricultural commodities.
Swaminathan Commission: A commission that made recommendations related to agriculture and farmers' welfare in India.
SHRI BABU SINGH KUSHWAHA: The Member of Parliament who raised the unstarred question regarding the legal status of MSP.
SHRI RAMNATH THAKUR: The Minister of State for Agriculture and Farmers Welfare who provided the answer to the unstarred question.
Union Budget for 2018-19: The annual financial statement of the government of India for the fiscal year 2018-2019, which announced principles related to MSP.
O.I.H
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 2674
TO BE ANSWERED ON THE 05TH AUGUST, 2025
LEGAL STATUS OF MSP
2674. SHRI BABU SINGH KUSHWAHA:
Will the Minister of AGRICULTURE AND FARMERS WELFARE
कृ(cid:874)ष एवं (cid:873)कसान क(cid:227)याण मं(cid:287)ी
be pleased to state:
(a) whether the Government is aware of the farmers' demand to grant legal status to the
Minimum Support Price (MSP);
(b) if so, the steps taken by the Government so far in this regard;
(c) if not, whether the Government proposes to bring any legislation after having dialogue
with the farmers in this regard; and
(d) whether the Government is formulating any action plan to implement the
recommendations of the Swaminathan Commission, if so, the details thereof?
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 RAMNATH THAKUR)
(a) to (c): Every year, Government fixes Minimum Support Prices (MSPs) for 22 mandated
agricultural crops for the country, 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 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 benefitted farmers of whole country.Increased MSP has benefited farmers 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 last five years including current year are given at Annexure.
To make Minimum Support Prices (MSPs) more effective and transparent, a
committee has been constituted on 12th July 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.
(d): On the recommendations of the Swaminathan Commission, an Inter- Ministerial
Committee (IMC) was constituted in the year 2007, which recommended 201 Action Points
to be implemented by the Government. All 201 Action Points have been implemented.Annexure
Annexure referred to in reply to part (a) to (c) of Lok Sabha Untarred Question No.
2674 due for reply on 05.08.2025
Procurement & MSP value of MSP Crops
All MSP Crops 2020-21 2021-22 2022-23 2023-24 2024-25*
Total Procurement
1,368 1,083 1,118 1,089 1,175
(In LMT)
Total MSP Value
2.91 2.25 2.47 2.63 3.33
(In lakh Crore)
*As on 30.06.2025
*****