Home India Ministry of Agriculture and Farmers Welfare Parliament Question: Review of MSP...
Date: 2025-08-05 Category: Not Applicable State: Union Government Country: India

Parliament Question: Review of MSP

Issued by Ministry of Agriculture and Farmers Welfare · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: The Government of India reviews and fixes Minimum Support Prices (MSPs) for 22 mandated agricultural crops annually, based on recommendations from the Commission for Agricultural Costs and Prices (CACP) and input from State Governments and Central Ministries/Departments. The Sub Mission on Agricultural Mechanization (SMAM) and Per Drop More Crop (PDMC) schemes are being implemented. Data on MSPs for Kharif and Rabi crops, as well as details regarding funds, beneficiaries, and area covered under SMAM and PDMC in Bihar from 2014-15 to 2025-26 are provided. Key Points / Main Content: * **Minimum Support Prices (MSP):** * Government fixes MSPs for 22 mandated agricultural crops across the country, not region or state-specific. * MSPs are based on CACP recommendations and input from State Governments and Central Ministries/Departments. * Details of MSPs announced for the marketing season 2023-24 onwards are provided in the Annexure. * **Sub Mission on Agricultural Mechanization (SMAM):** * Implemented w.e.f. 2014-15 through States/UTs Governments. * Aims to reach small and marginal farmers, including women. * Promotes Custom Hiring Centers, Hi-tech Hubs, and distribution of agricultural equipment. * Focuses on creating awareness through demonstrations and capacity building. * Subsidy of Rs. 231.58 crores provided in Bihar from 2014-15 to 2025-26. * Facilitated procurement of 39535 agricultural machinery and equipment. * Led to establishment of 1129 Custom Hiring Centres, 2 Hi-Tech Hubs and 874 Farm Machinery Banks. * **Per Drop More Crop (PDMC):** * Implemented as a Centrally Sponsored Scheme (CSS) across the country, including Bihar, from 2015-16. * Focuses on enhancing water use efficiency through Micro Irrigation (Drip and Sprinkler systems). * Implemented as a component of Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) until 2021-22. * Implemented under Pradhan Mantri Rashtriya Krishi Vikas Yojana (PMRKVY) from 2022-23. * Provides financial assistance for Drip and Sprinkler system installation: 55% for small and marginal farmers, 45% for other farmers. * Assistance limited to 5 hectares per beneficiary. * Rs. 233.75 crore released in Bihar from 2015-16 to 2025-26. * 35496-hectare area covered under micro-irrigation. * 30173 farmers benefitted in Bihar. IMPACT ANALYSIS: Farmers: * Impact: Benefit from MSP for crops, subsidies on agricultural machinery, and financial assistance for micro-irrigation. * Action Required: Utilize available schemes (SMAM & PDMC) to improve farm mechanization, water use efficiency, and overall income. State Governments: * Impact: Responsible for implementing SMAM and PDMC schemes. * Action Required: Effectively implement SMAM and PDMC to ensure benefits reach the targeted farmers. Central Ministries/Departments: * Impact: Provide input on MSP decisions and oversee the implementation of agricultural schemes. * Action Required: Continue to provide input on MSP decisions and monitor implementation of SMAM and PDMC schemes. Commission for Agricultural Costs and Prices (CACP): * Impact: Formulate recommendations for MSPs. * Action Required: Continue to provide recommendations for MSPs based on relevant factors.

Key Entities Referenced

Minimum Support Price: A price set by the Government of India to purchase crops directly from farmers to safeguard their interests. It is announced for 22 mandated agricultural crops. Commission for Agricultural Costs Prices: An advisory body that recommends Minimum Support Prices (MSP) to the Government of India, based on various factors. Bihar: A state in India where specific agricultural schemes and policies are being implemented. Sub Mission on Agricultural Mechanization: A scheme implemented by the Government of India through States/UTs to promote farm mechanization, especially benefiting small and marginal farmers. Rashtriya Krishi Vikas Yojana: A Centrally Sponsored Scheme (CSS) under which the Sub Mission on Agricultural Mechanization (SMAM) is being implemented. Per Drop More Crop: A Centrally Sponsored Scheme (CSS) focused on enhancing water use efficiency at the farm level through micro-irrigation techniques like drip and sprinkler irrigation. Pradhan Mantri Krishi Sinchayee Yojana: An initiative under which the Per Drop More Crop (PDMC) scheme was initially implemented as a component, focusing on irrigation and water management. SHRI RAMNATH THAKUR: Minister of State for Agriculture and Farmers Welfare
Official Source Record View Original Source →
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O.I.H. GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE LOK SABHA UNSTARRED QUESTION NO. 2757 TO BE ANSWERED ON THE 05th August, 2025 REVIEW OF MSP 2757. SHRI ABHAY KUMAR SINHA: 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 reviewed the State-wise increase in the minimum support price (MSP) for Kharif and Rabi crops during the years 2023-25, (b) if so, the details of declared MSP (2025-26) for main crops in the Bihar State; (c) whether the Government has sanctioned any new policy for mechanised agriculture and for the extension of irrigation facility in Bihar; and (d) if so, the details of fund incurred along incurred thereon along with the amount spent along number of beneficiaries thereof district wise? ANSWER 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 and not region or state-specific, based on the recommendations of Commission for Agricultural Costs & Prices (CACP), after considering the views of State Governments and Central Ministries/Departments concerned. The details of MSP announced for 22 mandated crops for marketing season 2023-24 & onwards are given at Annexure.(c) & (d): Government is implementing Sub Mission on Agricultural Mechanization (SMAM) w.e.f 2014-15 through States/UTS Governments. SMAM is now being implemented under the umbrella of Centrally Sponsored Scheme of Rashtriya Krishi Vikas Yojana (RKVY). The scheme aims at 'reaching the unreached' by bringing to the small and marginal farmers in the core including women farmers and giving the benefits of farm mechanization by Promoting 'Custom Hiring Centers', creating hubs for hi-tech & high value farm equipments, distribution of various agricultural equipments, creating awareness among stakeholders through demonstration and capacity building activities. Total amount of subsidy Rs. 231.58 crores provided under SMAM scheme to the farmers in the State of Bihar w.e.f. 2014-15 to 2025-26 (till date) for procurement of 39535 agricultural machinery and equipments, establishment of 1129 Nos Custom Hiring Centres, 2 Nos Hi-Tech Hubs and 874 Nos Farm Machinery Banks. Government is also implementing the Centrally Sponsored Scheme (CSS) of Per Drop More Crop (PDMC) in the Country including Bihar from the year 2015-16. PDMC focuses on enhancing water use efficiency at farm level through Micro Irrigation viz Drip and Sprinkler Irrigation Systems. During 2015-16 to 2021-22, PDMC implemented as a component of Pradhan Mantri Krishi Sinchayee Yojana (PMKSY). From the year 2022-23, the scheme is being implemented under the Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY).The Micro Irrigation helps in water saving as well as reduced fertilizer usage through fertigation, labour expenses, other input costs and overall income enhancement of farmers. Government provides financial assistance @ 55% for small and marginal farmers and @ 45% for other farmers for installation of Drip and Sprinkler systems under the PDMC. The Assistance for installation of Micro Irrigation systems is limited to 5 hectares per beneficiary. During the period 2015-16 to 2025-26 (till date), total amount of Rs. 233.75 crore was released, 35496 hectare area covered under micro Irrigation and 30173 farmers benefitted in the state of Bihar.Annexure Annexure referred to in reply to part (a) & (b) of Lok Sabha Untarred Question No. 2757 due for reply on 05.08.2025 Minimum Support Price (Marketing Season-wise)(₹/quintal) Commodities Kharif Kharif Kharif Marketing Marketing Marketing Season Season Season (KMS) (KMS) (KMS) 2023-24 2024-25 2025-26 KHARIF CROPS Paddy (Common) 2183 2300 2369 Paddy (Grade ‘A’) 2203 2320 2389 Jowar (Hybrid) 3180 3371 3699 Jowar (Maldandi) 3225 3421 3749 Bajra 2500 2625 2775 Ragi 3846 4290 4886 Maize 2090 2225 2400 Arhar 7000 7550 8000 Moong 8558 8682 8768 Urad 6950 7400 7800 Cotton 6620 7121 7710 (Medium Staple) Cotton 7020 7521 8110 (Long Staple) Groundnut 6377 6783 7263 Sunflower Seed 6760 7280 7721 Soyabean Yellow 4600 4892 5328 Sesamum 8635 9267 9846 Nigerseed 7734 8717 9537 Rabi Rabi Rabi Marketing Marketing Marketing RABI CROPS Season Season Season (RMS) (RMS) (RMS) 2023-24 2024-25 2025-26 Wheat 2125 2275 2425 Barley 1735 1850 1980 Gram 5335 5440 5650 Masur 6000 6425 6700 Rapeseed & mustard 5450 5650 5950 Safflower 5650 5800 5940 COMMERCIAL CROPS 2023-24 2024-25 2025-26 Jute 5050 5335 5650 2023 2024 2025 Copra (milling) 10860 11160 11582 Copra (ball) 11750 12000 12100*****

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