Executive Summary:
This document presents the Ministry of Agriculture & Farmers Welfare's response to questions regarding the Minimum Support Price (MSP) for Kharif crops, to be answered on July 22, 2025. It details the government's methodology for fixing MSP, the impact of MSP on farmers, and various initiatives to support farmers' income and agricultural development. The document includes annexures with data on procurement, MSP values, cost of production, and MSP for mandated crops for the marketing season 2025-26.
Key Points / Main Content:
Minimum Support Price (MSP) Determination:
The government fixes MSP for 22 mandated agricultural crops, including 14 Kharif crops, annually.
Recommendations from the Commission for Agricultural Costs and Prices (CACP) are considered, along with views from State Governments and Central Ministries/Departments.
CACP considers cost of production, demand-supply, prices (domestic & international), inter-crop parity, trade terms, economic impact, and resource utilization.
MSP ensures a minimum margin of 50% over production cost, including paid out costs and imputed value of family labor.
Impact of MSP:
Increased MSP has benefited farmers, as shown by procurement data and MSP amounts paid.
A 2016 NITI Aayog study found that MSP encourages farmers to adopt improved farming methods.
Government Initiatives:
The 2018-19 Union Budget established a principle to maintain MSP at 1.5 times the cost of production.
The government has increased MSP for Kharif, Rabi, and commercial crops, ensuring a minimum 50% return over the all-India weighted average cost of production from 2018-19.
Other initiatives include: PM-KISAN, PMFBY/RWBCIS, PM-KMY, AIF, FPOs, PMAASHA, MISS, NBHM, AgriSURE, National Mission on Natural Farming, Krishonnati Yojana, and RKVY.
Procurement and MSP Value (Annexure I):
Provides data on procurement and MSP value of all MSP crops from 2020-21 to 2024-25.
Cost, MSP, and Return (Annexure II):
Lists the cost of production, MSP, and return for 22 mandated crops for the marketing season 2025-26.
Impact Analysis
Farmers:
Impact: Benefitted from increased MSPs, leading to better returns on their produce and encouraging adoption of improved farming practices. Also benefit from multiple support schemes.
Action Required: Stay informed about MSP rates, utilize government schemes, and adopt recommended agricultural practices to maximize benefits.
State Governments:
Impact: Consulted in the MSP determination process, with their views considered by the CACP.
Action Required: Provide timely and relevant feedback to the CACP regarding MSP recommendations, considering regional factors and farmer needs.
Central Ministries/Departments:
Impact: Involved in the MSP determination process through consultations and providing relevant data and insights.
Action Required: Collaborate with the Ministry of Agriculture and CACP to provide necessary data and inputs for informed MSP decisions.
Key Entities Referenced
Minimum Support Price: A price floor set by the government to purchase crops from farmers, safeguarding their interests.
Kharif crops: Crops sown in the monsoon season in India.
Commission for Agricultural Costs and Prices: An advisory body that recommends minimum support prices (MSP) for agricultural produce to the Indian government.
NITI Aayog: A policy think tank of the Government of India.
Telangana: A state in India.
West Bengal: A state in India.
Andhra Pradesh: A state in India.
Assam: A state in India.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE & FARMERS WELFARE
DEPARTMENT OF AGRICULTURE & FARMERS WELFARE
LOK SABHA
STARRED QUESTION NO. 24
TO BE ANSWERED ON 22ND JULY, 2025
MINIMUM SUPPORT PRICE FOR KHARIF CROPS
*24. SMT. D.K. ARUNA:
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) whether the Minimum Support Price (MSP) for Kharif crops has been increased to cover
all the input costs as the MSP has become the maximum suffering for the producers, if so,
the details thereof;
(b) the details of studies done/action taken till now in this regard, crop-wise;
(c) whether the Government is crediting itself for declaring a higher MSP for crops, but the
MSP is far lower than the "cost (C2) plus 50 per cent" formula recommended by the
Swaminathan Commission, if so, the details thereof; and
(d) the corrective steps being taken through agriculture reforms to cover all the crops and
products through MSP so as to benefit every farmer in the country, State/UT-wise including
Telangana, West Bengal, Andhra Pradesh and Assam?
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. 24 DUE FOR ANSWER ON 22ND JULY, 2025 REGARDING ‘MINIMUM
SUPPORT PRICE for KHARIF CROPS’.
(a) & (b): Every year, Government fixes Minimum Support Price (MSP) for 22 mandated
agricultural crops including 14 Kharif crops, based on the recommendations of Commission for
Agricultural Costs & Prices (CACP), after considering the views of State Governments and
Central Ministries/Departments concerned.
While recommending MSP, CACP considers important factors like cost of production,
overall demand-supply conditions, domestic and international prices, inter-crop price parity,
terms of trade between agricultural and non-agricultural sectors, the likely effect on the rest of
the economy, besides ensuring rational utilization of land, water and other production resources
and a minimum of 50 percent as the margin over cost of production. The costs include all paid
out costs incurred in cash and kind and imputed value of family labour.
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- I.
The NITI Aayog (erstwhile Planning Commission) has conducted a study entitled
“Efficacy of minimum support prices on farmers”, in 2016. The study has found, among other
things, that MSP declared by the Government has encouraged 78% of the farmers covered under
the study for adopting improved methods of farming such as high yielding varieties of seeds,
organic manure, chemical fertilizer, pesticides and improved methods of harvesting etc.
(c) & (d): 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 including Telangana, West Bengal, Andhra
Pradesh and Assam. The cost of production and MSP announced of 22 mandated crops for
marketing season 2025-26 is given at Annexure-II.
For benefits of farmers, Government has taken several other initiatives which include
following:
(i) After budget announcement in 2018-19, Government had fixed MSP of
22 mandated crops at a level of at least one and half times of the cost of
production.
(ii) Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
(iii) Pradhan Mantri Fasal Bima Yojana (PMFBY)/Restructured Weather
Based Crop Insurance Scheme (RWBCIS)
(iv) Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY)
(v) Agriculture Infrastructure Fund (AIF)
(vi) Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)
(vii) Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA)
(viii) Modified Interest Subvention Scheme (MISS)
(ix) National Bee Keeping and Honey Mission (NBHM)
(x) Agri Fund for Start-Ups & Rural Enterprises' (AgriSURE)
(xi) National Mission on Natural Farming
(xii) Krishonnati Yojana
(xiii) Rashtriya Krishi Vikas Yojana (RKVY)Annexure I
STATEMENT REFERRED TO IN REPLY TO PART (b) OF LOK SABHA STARRED
QUESTION NO. 24* DUE FOR ANSWER ON 22.07.2025 REGARDING ‘MINIMUM SUPPORT
PRICE for KHARIF CROPS’
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 30.06.2025Annexure II
STATEMENT REFERRED TO IN REPLY TO PART (c) to (d) OF LOK SABHA STARRED
QUESTION NO. 24* DUE FOR ANSWER ON 22.07.2025 REGARDING ‘MINIMUM SUPPORT
PRICE for KHARIF CROPS’
Cost, MSP and return of mandated Crops (Marketing Season wise)
Sl. No. Commodity KMS-2025-26
KHARIF CROPS Cost MSP Return (%)
1 PADDY(Common) 1579 2369 50
(Grade A) ^ 2389
2 JOWAR (Hybrid) 2466 3699 50
(Maldandi) ^ 3749
3 BAJRA 1703 2775 63
4 RAGI 3257 4886 50
5 MAIZE 1508 2400 59
6 ARHAR(Tur) 5038 8000 59
7 MOONG 5845 8768 50
8 URAD 5114 7800 53
9 COTTON (Medium Staple) 5140 7710 50
(Long Staple) ^ 8110
10 GROUNDNUT 4842 7263 50
11 SUNFLOWER SEED 5147 7721 50
12 SOYABEAN 3552 5328 50
13 SESAMUM 6564 9846 50
14 NIGERSEED 6358 9537 50
RABI CROPS
RMS-2025-26
15 WHEAT 1182 2425 105
16 BARLEY 1239 1980 60
17 GRAM 3527 5650 60
18 MASUR (LENTIL) 3537 6700 89
19 RAPESEED/MUSTARD 3011 5950 98
20 SAFFLOWER 3960 5940 50
OTHER CROPS
2025
21 COPRA (Milling) 7721 11582 50
(Ball)^ 12100
2025-26
22 JUTE 3387 5650 67
^Cost data are not available for Paddy (Grade A), Jower (Maldandi), Cotton (Long staple) and Copra (Ball).
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