MSP procurement crosses 5,781 lakh tonnes in five years; farmers receive ₹14.58 lakh crore at support prices

New Delhi: The Government of India has procured 5,781 lakh tonnes of crops under the Minimum Support Price (MSP) mechanism during the last five years (2021-22 to 2025-26, up to June 2026), with farmers receiving ₹14.58 lakh crore as MSP payments during the period.

Sharing the information in the Lok Sabha, Minister of State for Agriculture and Farmers Welfare Ramnath Thakur said the Government continues to fix MSPs for 22 mandated crops every year based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), after considering the views of State Governments and concerned Ministries.

The Minister said that since the 2018-19 Union Budget, MSPs have been fixed at a minimum of 1.5 times the all-India weighted average cost of production for all notified kharif, rabi and commercial crops.

According to the Government, procurement of cereals and coarse cereals is undertaken by the Food Corporation of India (FCI) and designated State agencies, while pulses, oilseeds and copra are procured under the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) through the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and the National Cooperative Consumers' Federation of India Ltd (NCCF). Cotton and jute procurement at MSP is carried out through the Cotton Corporation of India (CCI) and the Jute Corporation of India (JCI), respectively.

The Government said procurement operations have become more transparent in recent years through direct transfer of MSP payments into farmers' bank accounts and integration of Aadhaar and land records with State procurement portals.

Highlighting the long-term trend, the Minister said procurement of all 22 MSP crops increased from 6,987 lakh tonnes (LMT) during 2004-14 to 12,819 lakh tonnes during 2014-26 (up to June 2026). During the same period, MSP payments to farmers rose from ₹7.41 lakh crore to ₹27.80 lakh crore.

The Government also highlighted measures to strengthen price support beyond traditional procurement. Under the Mission for Aatmanirbharta in Pulses, procurement of tur, urad and masur is being undertaken from pre-registered farmers to encourage domestic production and reduce import dependence.

In addition, the Market Intervention Scheme (MIS) under PM-AASHA continues to support farmers growing perishable horticultural crops during periods of price crashes. From the 2024-25 season, the Government introduced a Price Differential Payment (PDP) component, allowing States to compensate farmers directly for the difference between the Market Intervention Price and the market sale price instead of undertaking physical procurement.

The Government has also introduced reimbursement of storage and transportation costs for TOP crops (Tomato, Onion and Potato) to facilitate movement of produce from surplus to deficit regions and reduce distress sales.

According to the Government, these initiatives, along with investments in agricultural infrastructure, crop diversification, irrigation, mechanisation, digital agriculture, insurance and income support programmes, are aimed at ensuring remunerative returns to farmers while strengthening the country's agricultural sector.