New Delhi, August : The Government of India has reiterated its commitment to ensuring remunerative prices for farmers through the Minimum Support Price (MSP) system, stating that ₹14.58 lakh crore has been paid to farmers under MSP procurement during the last five years, while procurement operations continue to expand across major agricultural commodities.

In a written reply in the Lok Sabha, Minister of State for Agriculture and Farmers' Welfare, Shri Ramnath Thakur, said the Government fixes Minimum Support Prices (MSPs) for 22 mandated agricultural crops every year based on the recommendations of the Commission for Agricultural Costs and Prices (CACP) after considering the views of State Governments and relevant Central Ministries.

The Minister recalled that the Union Budget 2018-19 introduced the principle of fixing MSPs at a minimum of 1.5 times the all-India weighted average cost of production. Accordingly, since the 2018-19 crop season, MSPs for all notified Kharif, Rabi and commercial crops have been fixed with at least a 50 percent margin over the cost of production.

The government clarified that procurement is undertaken only for the marketable surplus available with farmers when market prices fall below the MSP. Foodgrains, including wheat, rice and coarse cereals, are procured through the Food Corporation of India (FCI) and designated State agencies to provide price support.

For pulses, oilseeds and copra, procurement is carried out under the Price Support Scheme (PSS) of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) at the request of State Governments whenever market prices fall below MSP. The nodal procurement agencies under the scheme are the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and the National Cooperative Consumers' Federation of India Ltd. (NCCF).

Similarly, cotton and jute are procured at MSP through the Cotton Corporation of India (CCI) and the Jute Corporation of India (JCI), respectively.

To improve farmer access to procurement, State Governments establish an adequate number of procurement centres based on production levels, marketable surplus, logistics and storage availability. Temporary purchase centres are also set up in addition to existing mandis and warehouses. The government noted that procurement systems have been strengthened in recent years through direct transfer of MSP payments into farmers' bank accounts and by integrating Aadhaar and land records with State procurement portals to ensure transparency and timely payments.

The government is also implementing the Mission for Aatmanirbharta in Pulses till 2030-31 to reduce import dependence and achieve self-sufficiency in pulse production. Under the mission, procurement of tur, urad and masur is undertaken through NAFED and NCCF from pre-registered farmers, based on requests received from State Governments.

In addition to MSP procurement, the Centre operates the Market Intervention Scheme (MIS) under PM-AASHA for perishable agricultural and horticultural commodities that are not covered under the Price Support Scheme. The scheme is activated at the request of State or Union Territory Governments when market prices decline by at least 10 percent compared to the previous normal year due to bumper production, thereby protecting farmers from distress sales.

To further strengthen support for growers of perishable crops, the Government introduced a Price Differential Payment (PDP) component under the Market Intervention Scheme from the 2024-25 season. Under this provision, States can choose either physical procurement of the crop or direct payment of the difference between the Market Intervention Price (MIP) and the farmer's sale price.

Another major reform introduced from the 2024-25 season allows reimbursement of storage and transportation costs for TOP crops (Tomato, Onion and Potato). The assistance is provided to Central nodal agencies and designated State agencies for transporting these crops from producing states to consuming markets, helping stabilize prices while benefiting farmers.

According to official data, during the period from 2021-22 to 2025-26 (up to June 2026), the Government procured 5,781 lakh metric tonnes (LMT) of MSP crops, resulting in MSP payments of ₹14.58 lakh crore to farmers.

The government also highlighted the long-term expansion of procurement operations. Total 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, the value of MSP payments to farmers rose from ₹7.41 lakh crore to ₹27.80 lakh crore.

The Minister further stated that the Government continues to implement a wide range of programmes to improve agricultural productivity, reduce cultivation costs, encourage crop diversification, and enhance farmers' incomes. These initiatives include schemes related to agricultural credit, crop insurance, income support, irrigation, mechanisation, quality seeds, horticulture, digital agriculture, farmer producer organisations, organic and natural farming, marketing infrastructure, extension services, and crop procurement.

The information was provided by Minister of State for Agriculture and Farmers' Welfare, Shri Ramnath Thakur, in a written reply in the Lok Sabha.