MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE (SHRI KANTI LAL BHURIA)
(a) to (e): The Government fixes Minimum Support Prices (MSPs) for 25 crops namely Paddy,
Jowar, Bajra, Maize, Ragi, Arhar (Tur), Moong, Urad, Cotton, Groundnut-in-shell, Sunflower
seed, Soyabean, Sesamum, Nigerseed, Wheat, Barley, Gram, Masur (Lentil), Rapeseed/Mustard,
Safflower, Toria, Copra, Jute and Tobacco and Statutory Minimum Price (SMP) for Sugarcane.
In addition, Government implements Market Intervention Scheme (MIS) on the request
of a State/UT Government for procurement of agricultural and horticultural commodities not
covered under the Price Support Scheme. The MIS is implemented in order to protect the growers
of these commodities from making distress sale in the event of bumper crop when the prices tend
to fall below the economic level/cost of production. Losses, if any, incurred by the procuring
agencies are shared by the Central Government and the concerned State Government on 50:50
basis (75:25 in case of North-Eastern States). However, the amount of loss to be shared between
Central Government and the concerned State Government is restricted to 25% of value of
procurement. Profit, if any, earned by the procuring agencies is retained by them.
Appropriate procurement arrangements are made by the designated agencies to buy
agricultural produce at MSP in different States. Further, with the amendment of the Agricultural
Produce Marketing Committee (APMC) Act, the farmers now have more options to sell their
produce to the prospective buyers. If the market price is more than the MSP fixed by the
Government, farmers are free to sell their produce in the open market.
A statement indicating the MSPs announced in recent years is enclosed.