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Centre highlights decade of growth in MSP procurement
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Friday, 07 August, 2026, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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The Central Government has said that its Minimum Support Price (MSP) policy has significantly strengthened farmers' incomes, with procurement under the MSP system nearly doubling and total MSP payments rising sharply over the past decade. In a written reply in the Lok Sabha, Minister of State for Agriculture and Farmers' Welfare Ramnath Thakur said the Government fixes MSPs annually for 22 mandated crops based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), after consulting State Governments and relevant Central Ministries.
The Minister noted that, following the announcement made in the Union Budget 2018-19, MSPs for all mandated Kharif, Rabi and commercial crops have been fixed at a minimum of 1.5 times the all-India weighted average cost of production, ensuring at least a 50 per cent margin over production costs.
According to the Government, procurement under the MSP system has expanded considerably. Between 2021-22 and 2025-26 (up to June 2026), the Government procured 5,781 lakh metric tonnes (LMT) of crops and disbursed Rs 14.58 lakh crore to farmers as MSP payments.
The Government also highlighted that procurement of all 22 MSP crops increased from 6,987 LMT during 2004-14 to 12,819 LMT during 2014-26 (up to June 2026). During the same period, MSP payments to farmers rose from Rs 7.41 lakh crore to Rs 27.80 lakh crore.
The Minister said cereals and coarse cereals are procured through the Food Corporation of India (FCI) and designated State agencies, while pulses, oilseeds and copra are procured under the Price Support Scheme (PSS) of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) through NAFED and NCCF, based on requests from State Governments when market prices fall below MSP. Cotton and jute are procured through the Cotton Corporation of India (CCI) and Jute Corporation of India (JCI), respectively.
To improve access for farmers, State Governments have expanded procurement infrastructure by opening additional procurement centres and temporary purchase points based on production, marketable surplus and logistics. The Government said procurement systems have also been modernised through direct transfer of MSP payments into farmers' bank accounts and integration of Aadhaar and land records with State procurement portals.
The Government further highlighted the launch of the Mission for Aatmanirbharta in Pulses till 2030-31 to reduce import dependence and achieve self-sufficiency in pulses. Under the mission, Tur, Urad and Masur are procured under PM-AASHA from pre-registered farmers through NAFED and NCCF.
In addition, the Government is implementing the Market Intervention Scheme (MIS) under PM-AASHA to support farmers growing perishable agricultural and horticultural commodities not covered under the Price Support Scheme. Since the 2024-25 season, a Price Differential Payment (PDP) component has been introduced under MIS, allowing farmers to receive the difference between the Market Intervention Price and the sale price instead of physical procurement. Another component reimburses storage and transportation costs for TOP crops (Tomato, Onion and Potato) moved from producing to consuming States.
The Government said it continues to implement a wide range of agricultural reforms and development programmes covering credit, crop insurance, income support, irrigation, mechanisation, crop diversification, marketing, digital agriculture, organic and natural farming, farmer producer organisations, infrastructure and procurement to improve farm productivity and ensure remunerative returns for farmers.
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