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Govt fixes MSPs for 22 crops annually based on CACP recommendations
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Thursday, 05 February, 2026, 15 : 00 PM [IST]
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Our Bureau, New Delhi
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The Government of India has reaffirmed its commitment to ensuring fair returns to farmers by fixing Minimum Support Prices (MSPs) for 22 mandated agricultural crops each year based on recommendations from the Commission for Agricultural Costs & Prices (CACP). This policy framework, aimed at stabilising farm incomes and strengthening agricultural resilience, forms part of the government’s broader agenda to support farmers through predictable price signals and market interventions.
Under the annual MSP mechanism, the government considers inputs from state governments and relevant central ministries before finalising MSPs for both Kharif and Rabi crops, as well as key commercial crops. The 22 mandated crops include 14 Kharif crops such as paddy, jowar, bajra, maize, ragi, tur (arhar), moong, urad, groundnut, soybean, sunflower, sesamum, nigerseed, and cotton, and 6 Rabi crops including wheat, barley, gram, masur (lentil), rapeseed & mustard, and safflower. Two commercial crops, jute and copra, are also covered under this MSP regime.
Since the Union Budget 2018–19, the government has followed a predetermined principle of setting MSPs at at least 1.5 times the cost of production, ensuring farmers receive a minimum return of 50 % over the all-India weighted average cost of production. This policy has aimed to provide long-term assurance to farmers, helping them plan crop choices and investment in farming activities with greater confidence.
The MSP system has delivered measurable benefits to farmers, as reflected in the procurement data and MSP payouts recorded from the 2022–23 to 2024–25 crop years. During this period, total procurement volumes and MSP values paid to farmers have risen, indicating continued market support and uptake of MSP-assured crops.
Information on MSP procurement and payments was provided by Ramnath Thakur, Minister of State for Agriculture & Farmers’ Welfare, in a written response to the Lok Sabha, highlighting the government’s commitment to maintaining a supportive policy environment for agriculture.
Amid ongoing efforts to bolster farmer welfare, MSPs remain a crucial tool in India’s agricultural policy framework, helping stabilise farm revenues, reduce volatility, and promote sustainable agricultural growth.
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