Minimum Support Price Scheme

The Minimum Support Prices were announced by the Government of India for the first time in 1966-67 for Wheat in the wake of the Green Revolution and extended harvest, to save the farmers from depleting profits. Since then, the MSP regime has been expanded to many crops. Minimum Support Price is the price at which government purchases crops from the farmers, whatever may be the price for the crops.  The MSP is announced by the Government of India for 25 crops currently at the beginning of each season viz. Rabi and Kharif. Following are the 25 crops covered by MSP:

Kharif Crops Rabi Crops
1Paddy15Wheat
2Jowar16Barley
3Bajra17Gram
4Maize18Masur (Lentil)
5Ragi19Rapeseed/Mustard
6Arhar(Tur)20Safflower
7Moong21Toria
8UradOther Crops
9Cotton22Copra
10Groundnut23De-Husked Coconut
11Sunflower Seed24Jute
12Soyabeen Black25Sugarcane
13Sesamum
14Nigerseed

Rationale behind MSP

If there is a fall in the prices of the crops, after a bumper harvest, the government purchases at the MSP and this is the reason that the priced cannot go below MSP. So this directly helps the farmers.

How MSP is decided?

The government decided the support prices for various agricultural commodities after taking into account the following:

  • Recommendations of Commission for Agricultural Costs and Prices
  • Views of State Governments
  • Views of Ministries
  • Other relevant factors.
Price Support Scheme (PSS) for Oil seeds and Pulses

The Department of Agriculture and Cooperation implements the Price Support Scheme for Oil Seeds and Pulses through the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED). NAFED is the nodal procurement agency for Oilseeds and pulses, apart from the Cotton Corporation of India. So, when the prices of oilseeds, pulses and cotton fall below MSP, NAFED purchases them from the farmers. 

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Comments

  • Nimesh Sheth
    Reply

    Minimum Support Price for various crops are fixed by the Government of India under which Act. In other words which Act empowers Government of India to fix MSP for various crops?

  • harish meena
    Reply

    good

    • amit

      APC OR CAPC , 1965 ..

  • Nitesh
    Reply

    grt work sir ji

  • sree
    Reply

    Good….

  • Atul
    Reply

    Its Very Good Site to improve your GK…..

  • prashant kr singh
    Reply

    thanks

  • Vivek verma
    Reply

    Good sites to gk improvement

  • ASGAR ANSARI
    Reply

    Its a GOOD site for everyone to know anything in the world.Believe on it blindly.

  • sourabh pandey
    Reply

    Its good that they have described minimum support price for crops and farmers would get the better prices even any time the prices would fell down into that condition also farmers would get better price for their crops but I must suggest them to give links of other useful terms like MEP and other useful schemes also which Gov’t run in that period for that particular topic.

  • Ankit
    Reply

    Good data and information..

  • satish
    Reply

    SUPERB information in a easy language about MSP. A lot of thnx for that.

  • Deelip gupta
    Reply

    why r not decided onion MSP

  • Nimish
    Reply

    Comprehensive. One other , often overlooked, reason for the Government to follow an MSP regime is that it wants to influence sowing decisions of the farmer to maintain a favourable food stock situation in the country. MSP ensures that depressed prices in one year do not influence the farmer enough to change his sowing practices. For example, low wheat prices in one year might cause a farmer to go for a cash crop in the next sowing season. If enough wheat farmers do the same, it might reduce the wheat output substantially next season. MSP mitigates such scenarios to a large extent.

  • Nandan
    Reply

    The explanation of MSP has been given in a very comprehensive and elucidating way helping the aspirants improve their interests to know about the agricultural topics and provide an additional attention for understanding the privileges of hardworking farmers of our nation…..
    ……thanx alot

  • Dinesh Sharma
    Reply

    Is Sugarcane Alse comes under MSP.?????

  • Manoj kumar Pradhan
    Reply

    my doubt is when 1st time introduce minimum support price in India.

  • Govind choudhary
    Reply

    The Minimum Support Prices were announced by the Government of India for the first time in 1966-67 for Wheat in the wake of the Green Revolution and extended harvest, to save the farmers from depleting profits. Since then, the MSP regime has been expanded to many crops. Minimum Support Price is the price at which government purchases crops from the farmers, whatever may be the price for the crops. The MSP is announced by the Government of India for 25 crops currently at the beginning of each season viz. Rabi and Kharif. Following are the 25 crops covered by MSP.

  • Suresh Motikhaye
    Reply

    What Factors has been into consideration while deciding the MSP .Whehter farmers are aware of these factors.

  • Dayakar
    Reply

    Sir,I am a farmer from nellore.the dalari (rice brokers) purchased paddy1010 for rs11600 per putty(918 KGS).but today they are purchasing for rs11200 per putty(918kgs).the farmers r losing rs400 per putty….whom to complaint…if such situation persists the farmers will be depressed…the selling has been decided by mill owners and dalari…they r getting profit and the poor farmers has to be on the loosing side.my humble suggestion is that the daily price of paddy can be displayed on the respective MRO office so that the poor farmers can at least know the paddy price….please save the farmers from the cheaters

  • ajith
    Reply

    But if the cost Incurred is more than map how would farmers benefit from that?

  • ajith
    Reply

    But if the cost Incurred is more than msp how would farmers benefit from that?

  • KANNAN RK. KANNU
    Reply

    Sugercane is not given MSP .

  • KANNAN RK. KANNU
    Reply

    Sugercane is given MSP from 1st June 2016 . Please ignore the above comment.

  • KANNAN RK. KANNU
    Reply

    Here’s the link to it : http://eands.dacnet.nic.in/PDF/MSP01062016.pdf

    • KANNAN RK. KANNU

      Sorry , its not MSP , its Fair and Remunerative Price.

  • Sudhir powar
    Reply

    Short and nice information to get you aquainted with basic concept thank you gk today.