New Delhi: The Centre on Tuesday reaffirmed that it continued to fix the Minimum Support Price for 22 mandated crops at least 1.5 times the cost of production, with procurement support for farmers, the government told the Lok Sabha.
Minister of State for Agriculture and Farmers Welfare Ramnath Thakur said the government fixed MSPs every year based on recommendations of the Commission for Agricultural Costs and Prices. He said the Centre also considered views from State governments and concerned ministries before finalising prices.
The minister recalled that the Union Budget 2018–19 had laid down the principle of providing farmers a minimum return of 50 percent over the all-India weighted average cost of production. He said the government implemented this policy for all mandated Kharif, Rabi, and commercial crops from 2018–19 onwards.
He added that farmers could sell their produce either to government agencies or in the open market, depending on which option gave them better returns.
Minimum Support Price backed by procurement network
Ramnath Thakur said the Food Corporation of India and designated State agencies procured cereals and coarse cereals to support farm prices. He said the government procured pulses, oilseeds, and copra under the Price Support Scheme of PM-AASHA when market prices dropped below MSP.
The minister said NAFED and NCCF carried out procurement under PM-AASHA, while the Cotton Corporation of India and the Jute Corporation of India procured cotton and jute at MSP.
He told the House that higher Minimum Support Price levels had benefited farmers across the country. During the 2024–25 crop year, total procurement reached 1,223 lakh metric tonnes, and MSP payments stood at ₹3.47 lakh crore.
The minister said the Centre also supported States through policy measures, budgetary assistance, and farmer welfare schemes. These included PM-KISAN, PMFBY, the Agriculture Infrastructure Fund, the Digital Agriculture Mission, and several production-linked missions.
