Executive Summary:
The Indian government, through the Ministry of Agriculture and Farmers Welfare, addresses questions regarding the policy of fixing Minimum Support Prices (MSPs) for 22 mandated agricultural crops. The MSPs are set based on recommendations from the Commission for Agricultural Costs & Prices (CACP), considering state governments and central departments' views, with the goal of ensuring a minimum return of 50% over the cost of production. The policy aims to benefit farmers nationwide, including those in Maharashtra, with procurement data provided for the period between 2022-2023 and 2024-2025.
Key Points / Main Content:
* **MSP Policy Implementation:**
* The government fixes MSPs for 22 mandated crops, including 14 Kharif crops, 6 Rabi crops, and 2 commercial crops.
* Since 2018-19, MSPs have been set at a level of one and a half times the cost of production.
* **Calculation Method:**
* CACP considers all paid-out costs, including hired labor, input costs, rent, depreciation, interest, and imputed family labor value.
* A uniform cost formula is applied across all 22 crops and states.
* **MSP Details and Profitability:**
* MSPs, costs, and profit margins (MSP as a percentage of cost) for the marketing seasons 2021-22 to 2025-26 are detailed in an annexure.
* **Benefits to Farmers:**
* Increased MSP has benefitted farmers across the country, including Maharashtra.
* Procurement and MSP amounts paid for paddy, wheat, and pulses from 2022-23 to 2024-25 are provided.
* **Addressing Farmer Concerns:**
* MSPs are fixed for the country as a whole, not region-specific, using an all-India weighted average cost method.
* The Market Intervention Scheme (MIS) supports perishable agricultural and horticultural commodities not covered under MSPs, based on state government requests.
Impact Analysis:
Farmers:
* Impact: Farmers benefit from the MSP policy through assured prices for their crops, aiming for a minimum 50% return over production costs, increased income through procurement.
* Action Required: Stay informed about the MSP for their crops and participate in government procurement processes.
State Governments:
* Impact: State governments are consulted in the MSP fixing process and can request the implementation of the Market Intervention Scheme (MIS) for perishable goods.
* Action Required: Provide feedback on MSP recommendations and request MIS implementation when necessary to protect growers from distress sales.
Central Ministries/Departments:
* Impact: Central Ministries/Departments concerned are consulted in the MSP fixing process.
* Action Required: Provide feedback on MSP recommendations.
Commission for Agricultural Costs & Prices (CACP):
* Impact: CACP is responsible for recommending MSPs to the government, considering various costs and inputs.
* Action Required: Continue to comprehensively assess costs and recommend appropriate MSPs.
Key Entities Referenced
Ministry of Agriculture and Farmers Welfare: The Indian government ministry responsible for agriculture and farmers' welfare.
Minimum Support Price: A price fixed by the Indian government to protect farmers from distress sales.
Maharashtra: A state in India, specifically mentioned in the context of MSP benefits and farmer concerns.
Commission for Agricultural Costs and Prices: An advisory body that recommends Minimum Support Prices (MSPs) for agricultural commodities.
Kharif crops: Crops sown in the monsoon season (e.g., paddy, jowar, bajra, maize, ragi, tur, moong, urad, groundnut, soyabean, sunflower, sesamum, nigerseed, cotton).
Rabi crops: Crops sown in the winter season (e.g., wheat, barley, gram, masur lentil, rapeseed mustard, safflower).
Union Budget for 2018-19: The fiscal budget that announced the policy to keep MSPs at 1.5 times the cost of production.
Market Intervention Scheme: A scheme implemented by the Government to protect the growers of perishable agricultural and horticultural commodities including vegetables and fruits which are not covered under the MSP.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 244
TO BE ANSWERED ON THE 22ND JULY, 2025
POLICY OF FIXING MINIMUM SUPPORT PRICE
244. SHRI BHASKAR MURLIDHAR BHAGARE:
SHRI BAJRANG MANOHAR SONWANE:
PROF. VARSHA EKNATH GAIKWAD:
SMT. SUPRIYA SULE:
SHRI MOHITE PATIL DHAIRYASHEEL RAJSINH:
DR. AMOL RAMSING KOLHE:
SHRI SANJAY DINA PATIL:
SHRI NILESH DNYANDEV LANKE:
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 Government has implemented the policy of fixing the Minimum Support Price
(MSP) at one-and-a-half times the cost of production for various crops and if so, the details
thereof;
(b) the details of method and cost formula used for calculating MSP and whether it is uniform
across all crops and States;
(c) the details of MSP fixed during the last five years and how it compares to
correspondingcost of production, crop-wise and year-wise;
(d) the extent to which this MSP policy has benefitted farmers across the country including
Maharashtra especially in terms of increased income and procurement levels;
(e) the details of actual procurement under MSP for key crops like paddy, wheat and
pulsesduring the last three years, with specific reference to Maharashtra;
(f) whether farmers in various States, including Maharashtra have reported concerns that
the MSP declared does not fully reflect their input costs or market conditions and if so,
response of Government thereto; and
(g) whether the Government proposes to expand the MSP coverage and
procurementoperations for crops that are currently under-represented in the system and the
timeline for the same?
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): Government fixes Minimum Support Prices (MSPs) for 22 mandated agricultural
crops based on the recommendations of Commission for Agricultural Costs & Prices
(CACP), after considering the views of State Governments and CentralMinistries/Departments concerned. The 22 mandated crops include 14 Kharif crops viz.
paddy, jowar, bajra, maize, ragi, tur (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.
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.
(b): While recommending the price policy, the CACP considers all costs in a
comprehensive manner which 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 on 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.Further, The cost formula used for calculating MSP is uniform for all 22 mandated
crops and states.
(c): The details of MSPs fixed, costs and Profit margin (MSP as a percentage of Cost) for
Marketing Season 2021-22 to 2025-26 are given at Annexure .
(d) & (e): Increased MSP has benefited farmers of whole country including in
Maharashtra which is evident from data given below for the procurement and MSP amount
paid to farmers for key crops such as Paddy, Wheat and Pulses between 2022–23 and
2024–25.
All India Maharashtra
CROPS Procurement MSP Value Procurement MSP Value
(in LMT) (Rs. In Crore) (in LMT) (Rs. In Crore)
Paddy 2,381.19 5,22,264.44 42.89 9,334.53
Wheat 828.42 1,89,039.84 0.00 0.00
Pulses 49.11 31,276.55 9.12 5,168.28
Total (All 22 Crops) 3,382.64 8,43,445.57 70.07 31,989.60
(f) to (g): Every year, Government fixes Minimum Support Prices (MSPs) for 22
mandated agricultural crops for the country as a whole and not region specific and cost of
production is considered on the basis of all India weighted average method.
For perishable agricultural and horticultural commodities including vegetables and
fruits which are not covered under the MSP,Government implements Market Intervention
Scheme (MIS) on the request of State/UT Government concerned. The objective of
intervention is to protect the growers of these commodities from making distress sale in the
event of a bumper crop during the peak arrival period when the prices tend to fall below
economic levels and cost of production.Annexure
Annexure referred to in reply to part (C) of Lok Sabha Un-Starred Question No. 244 due for reply on 22.07.2025
Minimum Support Price (MSP) and Cost of Production(Marketing Season-Wise) (Rs. per quintal)
Sl. KMS 2021-22 KMS 2022-23 KMS 2023-24 KMS 2024-25 KMS 2025-26
KHARIF CROPS
No. Cost MSP Cost MSP Cost MSP Cost MSP Cost MSP
PADDY(Common) 1293 1940 1360 2040 1455 2183 1533 2300 1579 2369
1 PADDY (Grade - 2389
- 1960 - 2060 - 2203 - 2320
A)^
JOWAR (Hybrid) 1825 2738 1977 2970 2120 3180 2247 3371 2466 3699
2 JOWAR - 3749
- 2758 - 2990 - 3225 - 3421
(Maldandi)^
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(Tur) 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 5140 7710
3817 5726 4053 6080 4411 6620 4747 7121
(Medium Staple)
9 COTTON (Long - 8110
- 6025 - 6380 - 7020 - 7521
Staple)
10 GROUNDNUT 3699 5550 3873 5850 4251 6377 4522 6783 4842 7263
11 SUNFLOWER 5147 7721
4010 6015 4113 6400 4505 6760 4853 7280
SEED
12 SOYABEAN 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 (cont…)
Sl. RMS 2021-22 RMS 2022-23 RMS 2023-24 RMS 2024-25 RMS 2025-26
RABI CROPS
No. Cost MSP Cost MSP Cost MSP Cost MSP Cost MSP
15 WHEAT 960 1975 1008 2015 1065 2125 1128 2275 1182 2425
16 BARLEY 971 1600 1019 1635 1082 1735 1158 1850 1239 1980
17 GRAM 2866 5100 3004 5230 3206 5335 3400 5440 3527 5650
18 MASUR (LENTIL) 2864 5100 3079 5500 3239 6000 3405 6425 3537 6700
19 RAPESEED/MUSTARD 2415 4650 2523 5050 2670 5450 2855 5650 3011 5950
20 SAFFLOWER 3551 5327 3627 5441 3765 5650 3807 5800 3960 5940
COMMERCIAL
2021-22 2022-23 2023-24 2024-25 2025-26
CROPS
21 JUTE 2832 4500 2959 4750 3095 5050 3237 5335 3387 5650
2021 2022 2023 2024 2025
COPRA (Milling) 6805 10335 6974 10590 7153 10860 7350 11160 7721 11582
22
COPRA (Ball)^ 10600 - 11000 - 11750 - 12000 - 12100
Note: KMS: Kharif Marketing Season, RMS: Rabi Marketing Season
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