The MSP refers to Minimum Support Price which ensures a minimum protective price to the commodities to check major price drop started during 1966-67. By creating an MSP, the government ensures farmers get a minimal profit for their produce, which might lead to an increase in the market price if it is set higher than the going rate.
Wheat was the first crop for which MSP was given, after which it was expanded for other crops.
MSP is considered as a floor price for the commodities, and allows farmers for the investment in right crops. It secures a permanent price even if the production is very high.
Dr. Frank W. Parkar is considered as father of MSP and there are the two main bodies which work for MSP declaration.
1. CACP- Commission for Agriculture Costs & Prices
2. CCEA- The Cabinet Committee on the Economic Affairs
MSP is recommended by CACP & final decision regarding MSP is taken by CCEA. It is provided for the commodities before sowing of the crop in both seasons i.e. Kharif & Rabi.
As it is provide before the sowing of the crop, so farmers can take decision regarding sowing of analysing MSP of the crop.
Currently, there are 22 crops for which government announces minimum support prices and for sugarcane fair and remunerative price i.e., FRP is announced. Out of 22 crops, 14 are kharif crops while 06 are rabi crops and other 02 are commercial crops.
MSP provides safety to the farmers against price fluctuations.
It ensures fair prices for the farmers produce.
It encourages farmers to produce crops strategically important for food security.
It stabilizes agriculture markets.
This time Indian government increases MSP for Rabi Crops for marketing season 2025-26 to check price fluctuations in the markets. The highest increase is observed in the rapeseed/mustard at Rs. 300 followed by lentil or masur at Rs. 275 per quintal.
Similarly, for wheat and safflower the increase is Rs. 150 per quintal & Rs.140 per quintal respectively while for barley and gram it is Rs. 130 per quintal and Rs. 210 per quintal respectively.
This increase is meant to encourage farmers to grow more of these essential crops, which is crucial for India’s food security.
Mustard is an important oilseed, helping India rely less on edible oil imports, and chana is a widely consumed pulse across the country. By boosting the production of these crops in major growing states like Rajasthan, Haryana, and Madhya Pradesh, India hopes to protect itself from the impact of global food and price changes.
MSP is Minimum Support Price announced by Indian government before the sowing time, recommended by CACP. It protects the farmers from exploitations by middleman in markets and price fluctuations. It was introduced in 1960s with price protection to wheat crop.
In the year 2024 Indian government has raised MSP for key rabi crops to check the price drops. This increase surely helps farmers and strengthen them which will in result protect the Indian food industry.
This MSP increase shows the Indian government’s support towards farming community and advancing agriculture. By encouraging crops like mustard and chana, government tried to make farmers aware towards crop diversification.
In spite of these efforts by the government, these efforts must be landed on the ground without any manipulation. Due to constant domestic market challenges, we have to develop all rounded methods to deal with the situation.
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