Parliament Question: MSP and Cost of Production of Crops

O.I.H.

GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE & FARMERS WELFARE DEPARTMENT OF AGRICULTURE & FARMERS WELFARE LOK SABHA STARRED QUESTION NO. 450 TO BE ANSWERED ON 24TH MARCH, 2026 MSP AND COST OF PRODUCTION OF CROPS *450. ADV. CHANDRA SHEKHAR:

SHRI HANUMAN BENIWAL:

Will the Minister of AGRICULTURE AND FARMERS WELFARE be pleased to state:

(a) the details of increase in the cost of production of various crops covered under the Minimum Support Price (MSP) during the last five years, crop-wise;

(b) the comparative details of the increase in the cost of production and the increase in MSP during the last five years;

(c) the provisions made by the Government to procure maximum quantity of crops at MSP from the farmers and the details there of including the upper limit of such crops;

(d) whether the Government reviews the procurement made out at MSP: and

(e) if so, the names of the crops which are not being procured despite being covered under MSP in various States including Rajasthanalong with the reasons therefor? 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 450 DUE FOR ANSWER ON 24TH MARCH, 2026 REGARDING ‘MSP AND COST OF PRODUCTION’

(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.The details of year wise Cost of Production and Minimum Support Prices (MSPs) of 22 mandated crops during last five years are given at Annexure.

(c) to (e): Out of the total production, only marketable surplus is available for procurement by Government agencies when market price of these produce fall below the 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 AnnadataAaySanrakshan Abhiyan (PM- AASHA), on the request of the concerned State Government as per the guidelines 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.

Adequate number of Procurement centres are opened by respective State Government Agencies, taking into account the production, marketable surplus, convenience of farmers and availability of other logistics / infrastructure such as storage and transportation etc. Temporary purchase centres, in addition to the existing Mandis and depots/godowns are also established at key points.

The procurement operation is a continuously evolving process and during the last few years, procurement processes under Minimum Support Price (MSP) have improved to ensure payment of MSP to farmer’s bank account directly and linkage of Aadhaar and Land records with the State’s procurement portals ensuring the farmers directly get the benefits of the MSP purchase.To encourage domestic production, procurement of Tur, Urad and Masur from the pre-registered farmers is undertaken through the Central Nodal Agencies under Mission for Aatmanir bharta in Pulses till 2030-31.

Increased MSP has benefited farmers of the country including farmers of Rajasthan 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 2004-2014 and 2014-2026 (upto February 2026) for 22 MSP Crops (14 Kharif crops viz. paddy, jowar, bajra, maize, ragi, arhar, moong, urad, groundnut, soyabean, sunflower, sesamum, nigerseed, cotton and 6 Rabi crops viz. wheat, barley, gram, masur (lentil), rapeseed & mustard, safflower and two commercial crops viz. jute and copra) are given

as under:

2004-2014 2014-2026 (upto February 2026) Total Total MSP Value Total Total MSP Value Procurement (In Lakh Crore) Procurement (In Lakh Crore) (In LMT) (In LMT) 6987 7.41 12,292 26.32Annexure ANNEXURE REFERRED TO IN REPLY TO PART (a) & (b) OF LOK SABHA STARRED QUESTION NO. 450 DUE FOR REPLY ON

24.03.2026 All India weighted cost of production (₹/quintal) and Minimum Support Price (Marketing Season-wise) Sr. Commodities KMS 2021-22 KMS 2022-23 KMS 2023-24 KMS 2024-25 KMS 2025-26 No.

All India All India All India All India All India weighted weighted weighted weighted weighted MSP MSP MSP MSP MSP KHARIF CROPS cost of cost of cost of cost of cost of production production production production production Paddy (Common) 1293 1940 1360 2040 1455 2183 1533 2300 1579 2369 1 Paddy (Grade ‘A’) 1960 2060 2203 2320 2389 Jowar (Hybrid) 1825 2738 1977 2970 2120 3180 2247 3371 2466 3699 2 Jowar (Maldandi) 2758 2990 3225 3421 3749 3 Bajra 1213 2250 1268 2350 1371 2500 1485 2625 1703 2775 4 Ragi 2251 3377 2385 3578 2564 3846 2860 4290 3257 4886 5 Maize 1246 1870 1308 1962 1394 2090 1447 2225 1508 2400 6 Arhar 3886 6300 4131 6600 4444 7000 4761 7550 5038 8000 7 Moong 4850 7275 5167 7755 5705 8558 5788 8682 5845 8768 8 Urad 3816 6300 4155 6600 4592 6950 4883 7400 5114 7800 Cotton (Medium Staple ) 3817 5726 4053 6080 4411 6620 4747 7121 5140 7710 9 Cotton (Long Staple) 6025 6380 7020 7521 8110 10 Groundnut 3699 5550 3873 5850 4251 6377 4522 6783 4842 7263 11 Sunflower Seed 4010 6015 4113 6400 4505 6760 4853 7280 5147 7721 12 Soyabean Yellow 2633 3950 2805 4300 3029 4600 3261 4892 3552 5328 13 Sesamum 4871 7307 5220 7830 5755 8635 6178 9267 6564 9846 14 Nigerseed 4620 6930 4858 7287 5156 7734 5811 8717 6358 9537Annexure contd.

All India weighted cost of production (₹/quintal) and Minimum Support Price (Marketing Season-wise) RABI RMS 2022-23 RMS 2023-24 RMS 2024-25 RMS 2025-26 RMS 2026-27 CROPS All India MSP All India MSP All India MSP All India MSP All India MSP weighted weighted weighted weighted weighted cost of cost of cost of cost of cost of production production production production production 15 Wheat 1008 2015 1065 2125 1128 2275 1182 2425 1239 2585 16 Barley 1019 1635 1082 1735 1158 1850 1239 1980 1361 2150 17 Gram 3004 5230 3206 5335 3400 5440 3527 5650 3699 5875 18 Masur 3079 5500 3239 6000 3405 6425 3537 6700 3705 7000 Rapeseed 19 & mustard 2523 5050 2670 5450 2855 5650 3011 5950 3210 6200 20 Safflower 3627 5441 3765 5650 3807 5800 3960 5940 4360 6540 COMMERCIAL CROPS 2022-23 2023-24 2024-25 2025-26 2026-27 21 Jute 2959 4750 3095 5050 3237 5335 3387 5650 3662 5925 2022 2023 2024 2025 2026 Copra

(milling) 6974 10590 7153 10860 7350 11160 7721 11582 8018 12027 22 Copra (ball) 11000 11750 12000 12100 12500

Note: KMS: Kharif Marketing Season, RMS: Rabi Marketing Season ******