Executive Summary:
This document is the response to Lok Sabha Starred Question No. 26, answered on July 22, 2025, regarding the sale of crops at lower prices. It details the government's initiatives, including the Minimum Support Price (MSP) scheme, crop insurance, infrastructure development, and support for organic farming, aimed at improving farmers' income. The statement includes data on procurement and MSP values from 2020-21 to 2024-25.
Key Points / Main Content:
Minimum Support Price (MSP):
* Government fixes MSP for 22 mandated agricultural crops annually based on CACP recommendations, considering state governments' and central ministries' views.
* Since 2018-19, MSPs are set at levels of one and a half times the cost of production, ensuring a minimum return of 50% over the all-India weighted average cost of production.
* Farmers have the option to sell to government agencies or in the open market.
* Data on procurement and MSP value paid to farmers from 2020-21 to 2024-25 is provided.
Crop Insurance Schemes:
* Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) provide financial support to farmers for crop loss/damage due to natural calamities and adverse weather.
* These schemes offer comprehensive risk insurance from pre-sowing to post-harvest.
Infrastructure Development:
* Agriculture Infrastructure Fund (AIF) with a corpus of ₹1 lakh crore supports the creation of post-harvest management infrastructure, including warehouses and cold storages.
* Agricultural Marketing Infrastructure (AMI) sub-scheme under ISAM supports the development of rural godowns and storage facilities.
Marketing and Farmer Producer Organizations (FPOs):
* Support for 10,000 FPOs includes market linkages through platforms like e-NAM, ONDC, and GeM to improve bargaining power and reduce distress sales.
* The e-NAM platform connects APMCs across states, providing farmers access to wider markets.
Organic Farming:
* Paramparagat Krishi Vikas Yojana (PKVY) promotes organic farming through cluster-based support, from production to marketing.
Impact Analysis:
Farmers:
* Impact: Benefit from MSP, crop insurance, improved infrastructure, better market access, and support for organic farming, potentially increasing income and reducing losses.
* Action Required: Utilize available schemes and infrastructure, participate in FPOs, and consider organic farming practices.
State Governments:
* Impact: Need to provide input and support to the CACP for MSP recommendations and facilitate the implementation of central schemes.
* Action Required: Coordinate with central agencies, disseminate information to farmers, and ensure effective scheme implementation.
Central Ministries/Departments:
* Impact: Responsible for formulating and implementing policies and schemes related to agriculture and farmers' welfare.
* Action Required: Continue to monitor and evaluate the effectiveness of implemented schemes and adjust strategies as needed.
Procurement Agencies:
* Impact: Play a crucial role in procuring crops at MSP, ensuring farmers receive fair prices.
* Action Required: Maintain efficient procurement processes and infrastructure.
Key Entities Referenced
Minimum Support Price MSP: A price fixed by the Government to purchase crops from the farmers, to safeguard their interest.
Haryana: A state in India where farmers are reportedly forced to sell crops at lower prices.
Jharkhand: A state in India where farmers are reportedly forced to sell crops at lower prices and where the benefits of MSP are being questioned.
Jammu and Kashmir: A union territory in India where farmers are reportedly forced to sell crops at lower prices.
Commission for Agricultural Costs Prices CACP: An entity that provides recommendations to the Government regarding the Minimum Support Price for crops.
Pradhan Mantri Fasal Bima Yojana PMFBY: A yield based crop insurance scheme introduced by the Government to provide financial support to farmers suffering crop loss or damage arising out of natural calamities.
Agriculture Infrastructure Fund AIF: A financing facility with a corpus of 1 lakh crore launched to support the creation of postharvest management infrastructure.
Paramparagat Krishi Vikas Yojana PKVY: A scheme to promote organic farming. It is a component of Pradhan Mantri Rashtriya Krishi Vikas Yojana PMRKVY.
O.I.H.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE & FARMERS WELFARE
DEPARTMENT OF AGRICULTURE & FARMERS WELFARE
LOK SABHA
STARRED QUESTION NO. 26
TO BE ANSWERED ON 22ND JULY, 2025
SALE OF CROPS AT LOWER PRICES
*26. SHRI SATPAL BRAHAMCHARI:
SHRI CHANDRA PRAKASH CHOUDHARY:
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 is aware that the farmers are being forced to sell their crops at
prices lower than the cost price in various parts of the country including Haryana, Jharkhand
and Jammu and Kashmir thereby affecting their income adversely;
(b) whether all the farmers are getting proper benefits under the Minimum Support Price
(MSP) scheme, if so, the details thereof and if not, the reasons therefor particularly in
Jharkhand;
(c) whether the Government is taking any special initiatives in the areas of crop insurance,
marketing facility, storage and organic farming under the scheme of doubling the farmers'
income; and
(d) if so, the details thereof?
ANSWER
THE MINISTER OF AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी (SHRI SHIVRAJ SINGH CHOUHAN)
(a) to (d): A Statement is laid on the Table of the House.STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (d) OF LOK SABHA STARRED
QUESTION NO. 26 DUE FOR ANSWER ON 22ND JULY, 2025 REGARDING ‘SALE OF CROPS
AT LOWER PRICES’.
(a) & (b): Every year, Government fixes Minimum Support Price (MSP) for 22 mandated
agricultural crops for the country as a whole based on the recommendations of Commission for
Agricultural Costs & Prices (CACP), after considering the views of 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 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.
Government offers to procure agricultural crops through designated procurement
agencies and farmers have the option to sell their produce to the government agencies or in
the open market whichever is advantageous to them.
Increased MSP has benefited farmers of whole country including farmers of Jharkhand
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 last five years including current year
are given as under:
Procurement & MSP value of MSP Crops
All MSP Crops 2020-21 2021-22 2022-23 2023-24 2024-25*
Total
Procurement 1,368 1,083 1,118 1,089 1,175
(In LMT)
Total MSP Value
2.91 2.25 2.47 2.63 3.33
(In lakh Crore)
*As on 30.06.2025
(c) & (d): For the benefit of farmers, Government has taken several initiatives which
include Pradhan Mantri Fasal Bima Yojana (PMFBY)/Restructured Weather Based Crop
Insurance Scheme (RWBCIS), Agriculture Infrastructure Fund (AIF), Marketing Infrastructure
and Paramparagat Krishi Vikas Yojana (PKVY) to encourage organic farming. Details of these
are given below:
Pradhan Mantri Fasal Bima Yojana and weather based Restructured weather
Based Crop Insurance Scheme (WBCIS) – Government has introduced yield based
Pradhan Mantri Fasal Bima Yojana (PMFBY) and Weather Index Based RestructuredWeather Based Crop Insurance Scheme (RWBCIS) from Kharif 2016 to provide
financial support to farmers suffering crop loss/damage arising out of natural calamities,
adverse weather incidence and to stabilize the income of farmers etc. Comprehensive
risk insurance is provided under the scheme from pre-sowing to post-harvest losses.
Agriculture Infrastructure Fund (AIF): A dedicated financing facility with a corpus of
₹1 lakh crore launched to support the creation of post-harvest management
infrastructure including warehouses, cold storages, sorting/grading units, and primary
processing centers.
Agricultural Marketing Infrastructure (AMI) sub-scheme under Integrated Scheme
for Agricultural Marketing (ISAM): Supports the development of rural godowns and
storage facilities, enhancing farmers’ ability to store produce and sell at better prices.
Formation and Promotion of 10,000 FPOs scheme: FPOs are being supported
with market linkages through digital platforms like National Agriculture Market (e-
NAM), open network for digital commerce (ONDC), Government e Marketplace
(GeM), and physical infrastructure to act as aggregators, reducing distress sale and
improving bargaining power.
e-NAM Integration: The National Agriculture Market (e-NAM) platform connects
APMCs across states, providing farmers access to wider markets and better price
realization.
Paramparagat Krishi Vikas Yojana (PKVY)- Government is promoting organic
farming in the country through the scheme of Paramparagat Krishi Vikas Yojana
(PKVY), a component of Pradhan Mantri- Rashtriya Krishi Vikas Yojana (PM-RKVY)
including the State of Punjab. The PKVY scheme provides end-to-end support to
organic farmers i.e. from production to processing, certification and marketing in a
cluster based approach. The primary focus of the scheme is to form organic clusters
in a cluster where preference is given to small and marginal farmers.
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