Government Strengthens Farmer Income Support Through MSP and Procurement
19 December 2025, New Delhi: Every year, Government fixes Minimum Support Prices (MSPs) for 22mandated agricultural crops based on the recommendations of the Commission for AgriculturalCosts & Prices (CACP), after considering the views of the State Governments and CentralMinistries/Departments concerned.
The Union Budget for 2018-19 had announced the pre-determined principle to keepMSPs at levels of at least one and half times of the cost of production. Accordingly, Governmenthad increased MSPs for all mandated Kharif, Rabi and other Commercial crops with a minimumreturn of 50 percent over all India weighted average cost of production from year 2018-19onwards.
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.
Government procures cereals and coarse cereals through Food Corporation of India(FCI) and other designated State Agencies to provide price support to the farmers.
Procurement of pulses, oilseeds and copra is done under Price Support Scheme underUmbrella Scheme of Pradhan MantriAnnadataAaySanrakshanAbhiyan (PM-AASHA), inconsultation with the concerned State Government as and when market price of these produce fall below the MSP. Procurement agencies under PM-AASHA Scheme are NationalAgricultural Cooperative Marketing Federation of India Ltd (NAFED) and National Co-operative Consumers’ Federation of India Ltd. (NCCF). Cotton and Jute are also procured byGovernment at MSP through Cotton Corporation of India (CCI) and Jute Corporation of India(JCI), respectively.
Increased MSP has benefited farmers of the country which are evident from data ofprocurement and MSP amount paid to the farmers. The details of procurement and MSP amountpaid to farmers during 2024-25 (Crop Year) are given as under:
| Total Procurement (In LMT) | Total MSP Value (In Lakh Crore) |
| 1,223 | 3.47 |
Government of lndia supplements the efforts of States through appropriate policy measures and budgetary support and various schemes/ programmes. The importantinitiatives of the Government of India meant for the Welfare of farmersby increasing production, remunerative returns and income support to farmers are given below.
- National Food Security and Nutrition Mission (NFSNM)
- National Mission on Edible Oils (NMEO)-Oil Palm
- National Mission on Edible Oils (NMEO)-Oilseeds
- National Mission on Natural Farming (NMNF)
- ParamparagatKrishiVikasYojana (PKVY)
- Soil Health & Fertility (SH&F)
- Rainfed Area Development (RAD)
- Agroforestry
- Crop Diversification Programme (CDP)
- Sub-Mission on Agriculture Extension (SMAE)
- Sub-Mission on Seed and Planting Material (SMSP)
- Mission for Integrated Development of Horticulture (MIDH)
- National Bamboo Mission
- National Bee Keeping and Honey Mission (NBHM)
- Mission Organic Value Chain Development for North Eastern Region
- Per Drop More Crop (PDMC)
- Integrated Scheme for Agriculture Marketing (ISAM)
- Pradhan MantriKisanSammanNidhi (PM-KISAN)
- Pradhan MantriKisanMaanDhanYojana (PM-KMY)
- Pradhan MantriFasalBimaYojana (PMFBY)/ Restructured Weather Based Crop Insurance Scheme (RWBCIS)
- Pradhan MantriAnnadataAaySanraksHanAbhiyan (PM-AASHA)
- Modified Interest Subvention Scheme (MISS)
- Agriculture Infrastructure Fund (AIF)
- Formation and Promotion of 10,000 new Farmer Producers Organizations (FPOs)
- Agri Fund for Start-Ups & Rural Enterprises (AgriSURE)
- Sub-Mission on Agriculture Mechanization (SMAM)
- Digital Agriculture Mission
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