Parliament Question: MSP as per recommendations of M.S. Swaminathan Committee

**Executive Summary** This document provides an answer to Unstarred Question No. 355 in Lok Sabha, regarding the implementation of Minimum Support Prices (MSPs) as per the recommendations of the M.S. Swaminathan Committee. The question was to be answered on December 2nd, 2025. It details the steps taken by the Government to fulfill its promise to farmers and the timeframe to settle the issue. **Key Points / Main Content** * **Minimum Support Prices (MSPs)** * The Government fixes MSPs for 22 mandated agricultural crops annually. * This is based on recommendations from the Commission for Agricultural Costs & Prices (CACP). * The views of State Governments and Central Ministries/Departments are also considered. * **M.S. Swaminathan Committee Recommendations** * The National Commission on Farmers (NCF) recommended MSPs to be at least 50 percent more than the weighted average cost of production. * The Government announced in its Union Budget for 2018-19 to keep MSP at a minimum of one and a half times the cost of production. * MSPs for all mandated Kharif, Rabi, and other commercial crops have been fixed with a margin of at least 50 percent over the weighted average cost of production. * **Factors Considered by CACP** * CACP considers the cost of production. * CACP considers overall demand-supply conditions. * CACP considers domestic and international prices. * CACP considers inter-crop price parity. * CACP considers terms of trade between agricultural and non-agricultural sectors. * CACP considers the likely effect on the rest of the economy. * CACP ensures the rational utilization of land, water, and other production resources. * CACP considers a minimum of 50 percent as the margin over cost of production. **Impact Analysis** **Farmers** * **Impact**: Farmers benefit from MSPs that are set at a minimum of one and a half times the cost of production, providing a safety net and ensuring a margin of at least 50% over production costs for Kharif, Rabi, and other commercial crops. * **Action Required**: Farmers should be aware of the MSPs announced for their crops and understand the factors considered by CACP in determining these prices. **State Governments and Central Ministries/Departments** * **Impact**: State Governments and Central Ministries/Departments provide their views during the MSP determination process. * **Action Required**: These entities must continue to provide input and collaborate with the CACP in the MSP determination process. **Commission for Agricultural Costs & Prices (CACP)** * **Impact**: The CACP plays a central role in recommending MSPs, considering various factors like production costs, market conditions, and economic effects. * **Action Required**: The CACP must continue to analyze relevant factors and provide recommendations for MSPs that balance the interests of farmers and the economy.

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