Executive Summary:
This document is the response to Lok Sabha Unstarred Question No. 4289 regarding the Minimum Support Price (MSP) for agricultural products, answered on August 19, 2025. It details the criteria for fixing MSP, the MSPs announced for various crops over the past three years (2023-2026), and the steps taken to ensure farmers receive the declared MSP. It also addresses regional differences in agricultural income and costs.
Key Points / Main Content:
* **MSP Determination:**
* The government fixes MSPs annually for 22 mandated agricultural crops based on recommendations from the Commission for Agricultural Costs & Prices (CACP), considering input 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, ensuring a minimum of 50% margin over production cost.
* Since the Union Budget of 2018-19, MSPs are set at a minimum of 1.5 times the cost of production.
* **MSP Implementation & Procurement:**
* The Food Corporation of India (FCI) and state agencies procure cereals and coarse grains to provide price support after MSP announcement.
* Pulses, oilseeds, and copra are procured under the Price Support Scheme of Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PMAASHA), through NAFED and NCCF, when market prices fall below MSP, in consultation with state governments.
* Cotton and jute are procured through the Cotton Corporation of India (CCI) and Jute Corporation of India (JCI), respectively.
* **Agricultural Costs & Income:**
* Agricultural cost of production includes paid costs (labor, rent, inputs, etc.) and imputed value of family labor.
* Acknowledges that agriculture is a State subject. The Central Government supports states through policy, budget allocation, and various schemes.
* The budget allocation for the Department of Agriculture & Farmers Welfare (DAFW) has increased from Rs. 21933.50 crore (BE 2013-14) to Rs. 1,37,756.55 crore (BE 2025-26).
* **Government Schemes for Farmers:**
* Lists several schemes to increase farmer income and develop the agriculture sector, including PM-KISAN, PMKMY, PMFBY, MISS, AIF, formation of FPOs, NBHM, Namo Drone Didi, NMNF, PMAASHA, AgriSURE, PDMC, SMAM, PKVY, SHF, RAD, Agroforestry, CDP, SMAE, SMSP, NFSNM, ISAM, MIDH, NMEO, and others.
* **MSP Details (2023-2026):**
* Provides a table (Annexure) detailing the Minimum Support Prices for Kharif, Rabi, and Commercial crops for the marketing seasons 2023-24, 2024-25, and 2025-26.
Impact Analysis:
* **Farmers:**
* Impact: Affected by the MSP rates for their crops, the procurement processes, and the availability of government schemes aimed at increasing their income.
* Action Required: Farmers should be aware of the MSP for their crops, understand the procurement process in their state, and leverage available government schemes to improve their income and productivity.
* **State Governments:**
* Impact: Responsible for collaborating with the central government on MSP implementation, particularly for pulses, oilseeds, and copra procurement, and for agricultural development within their state.
* Action Required: State governments need to coordinate with central agencies for procurement, implement state-level agricultural development programs, and ensure farmers are aware of MSP and related schemes.
* **Central Government (Ministry of Agriculture & Farmers Welfare):**
* Impact: Responsible for determining MSP, managing procurement through agencies like FCI, NAFED, CCI and JCI, and formulating policies and schemes to support the agricultural sector.
* Action Required: The Ministry needs to continue monitoring market prices, coordinating procurement operations, and refining policies and schemes to ensure effective price support and agricultural development.
* **Food Corporation of India (FCI), NAFED, NCCF, CCI, JCI:**
* Impact: These agencies are directly involved in the procurement of various crops at MSP, playing a crucial role in ensuring price support to farmers.
* Action Required: These agencies must efficiently manage procurement operations, ensuring timely payments to farmers and effective storage and distribution of procured commodities.
Key Entities Referenced
Minimum Support Price: A price fixed by the Government of India to protect farmers from distress sales.
Commission for Agricultural Costs Prices: An advisory body that recommends MSPs to the Government of India.
Pradhan Mantri Annadata Aay Sanrakshan Abhiyan: An umbrella scheme to ensure farmers receive remunerative prices for their produce.
National Agricultural Cooperative Marketing Federation of India Ltd: A procurement agency under PMAASHA.
National Co operative Consumers' Federation of India Ltd: A procurement agency under PMAASHA.
Food Corporation of India: An agency responsible for the procurement and distribution of food grains.
Pradhan Mantri Kisan Samman Nidhi: A scheme providing income support to small and marginal farmers.
Department of Agriculture and Farmers Welfare: The ministry responsible for agriculture and farmer welfare in India
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 4289
TO BE ANSWERED ON 19TH AUGUST, 2025
MSP ACCORDING TO COST OF PRODUCTION
4289. PROF. SOUGATA RAY:
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 has followed any criteria to fix the MSP of various agriculture
products according to cost of production;
(b) if so, the details thereof;
(c) the details of Minimum Support Price announced for various agriculture products since
the last three years:
(d) the details of steps taken by the government to ensure the declared MSP to farmers
across the country;
(e) whether the agricultural income and costs differ significantly across regions due to
various factors; and
(f) if so, the reasons thereof and steps taken to ensure uniform income to farmers across
the country?
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) & (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.
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.Government, in its Union Budget for 2018-19, had
made an announcement to keep MSP at a level of minimum one and half times of the cost
of production as a pre-determined principle. Accordingly, MSPs for all mandated Kharif,
Rabi and other commercial crops have been fixed with a margin of at least 50 percent over
weighted average cost of production.
(c): The details of Minimum Support Price announced for 22 mandated agriculture crops
since the last three years are given at Annexure.
(d): 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
(e) & (f): The agricultural cost of production include all paid out costs such as those incurred
on account of hired human labour, bullock labour/machine labour, rent paid for leased in
land, expenses incurred in cash and kind on the use of material inputs like seeds, fertilizers,
manures, irrigation charges, depreciation on implements and farm buildings, interest on
working capital, diesel/electricity for operation of pump sets etc., miscellaneous expenses
and imputed value of family labour.
Agriculture is a State subject and Government of India supports the efforts of
States through appropriate policy measures, budgetary allocation and various
schemes/programmes. The Government has substantially enhanced the budget allocation
of Department of Agriculture & Farmers Welfare (DA&FW) from Rs. 21933.50 crore BE
during 2013-14 to Rs. 1,37,756.55 crore BE during 2025-26. Major schemes/programmes
initiated by DA&FW to increase the income of farmers including small and marginal farmers
and for the development of agriculture Sector in India are as under:i. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
ii. Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY)
iii. Pradhan Mantri Fasal Bima Yojana (PMFBY)/ Restructured Weather Based Crop
Insurance Scheme (RWBCIS)
iv. Modified Interest Subvention Scheme (MISS)
v. Agriculture Infrastructure Fund (AIF)
vi. Formation and Promotion of 10,000 new Farmer Producers Organizations (FPOs)
vii. National Bee Keeping and Honey Mission (NBHM)
viii. Namo Drone Didi
ix. National Mission on Natural Farming (NMNF)
x. Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA)
xi. Agri Fund for Start-Ups & Rural Enterprises’ (AgriSURE)
xii. Per Drop More Crop (PDMC)
xiii. Sub-Mission on Agriculture Mechanization (SMAM)
xiv. Paramparagat Krishi Vikas Yojana (PKVY)
xv. Soil Health & Fertility (SH&F)
xvi. Rainfed Area Development (RAD)
xvii. Agroforestry
xviii. Crop Diversification Programme (CDP)
xix. Sub-Mission on Agriculture Extension (SMAE)
xx. Sub-Mission on Seed and Planting Material (SMSP)
xxi. National Food Security and Nutrition Mission (NFSNM)
xxii. Integrated Scheme for Agriculture Marketing (ISAM)
xxiii. Mission for Integrated Development of Horticulture (MIDH)
xxiv. National Mission on Edible Oils (NMEO)-Oil Palm
xxv. National Mission on Edible Oils (NMEO)-Oilseeds
xxvi. Mission Organic Value Chain Development for North Eastern Region
xxvii. Digital Agriculture Mission
xxviii. National Bamboo MissionAnnexure
Annexure referred to in reply to part (c) of Lok Sabha Un-Starred Question No.4289
due for reply on 19.08.2025
Minimum Support Price of crops
(Marketing Season-wise) (₹/quintal)
Sr. KMS KMS KMS
No. Commodities 2023-24 2024-25 2025-26
KHARIF CROPS
Paddy (Common) 2183 2300 2369
1
Paddy (Grade ‘A’) 2203 2320 2389
2 Jowar (Hybrid) 3180 3371 3699
Jowar (Maldandi) 3225 3421 3749
3 Bajra 2500 2625 2775
4 Ragi 3846 4290 4886
5 Maize 2090 2225 2400
6 Arhar 7000 7550 8000
7 Moong 8558 8682 8768
8 Urad 6950 7400 7800
9 Cotton 6620 7121 7710
(Medium Staple )
Cotton 7020 7521 8110
(Long Staple )
10 Groundnut 6377 6783 7263
11 Sunflower Seed 6760 7280 7721
12 Soyabean Yellow 4600 4892 5328
13 Sesamum 8635 9267 9846
14 Nigerseed 7734 8717 9537
RABI CROPS RMS RMS RMS
2023-24 2024-25 2025-26
15 Wheat 2125 2275 2425
16 Barley 1735 1850 1980
17 Gram 5335 5440 5650
18 Masur 6000 6425 6700
19 Rapeseed & mustard 5450 5650 5950
20 Safflower 5650 5800 5940
COMMERCIAL CROPS
2023-24 2024-25 2025-26
21 Jute 5050 5335 5650
2023 2024 2025
Copra (milling) 10860 11160 11582
22
Copra (ball) 11750 12000 12100
Note: KMS: Kharif Marketing Season, RMS: Rabi Marketing Season
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