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More than 2 crore farmers benefited through MSP in the year 2020-21

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03 August 2021, New Delhi: The procurement at Minimum Support Price (MSP) is being done by Central and State Agencies under various schemes of Government. Besides, the overall market also responds to declaration of MSP and Government’s procurement operations which results in private procurement on or above the MSP for various notified crops. Therefore, accurate number of farmers benefiting from MSP declaration is difficult to assess. However, the farmers benefitted from Government procurement at MSP is as under:-

No of Farmers1,71,50,8732,04,63,5902,10,07,563

GovGovernment of India announces Minimum Support Prices (MSP) for 22 major agricultural commodities of Fair Average Quality (FAQ) each year in both the Crop seasons after taking into account the recommendations of the Commission for Agricultural Costs and Prices (CACP). Government also extends remunerative price to farmers through its various interventions schemes.

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For making effective procurement by Government agencies at MSP and providing maximum benefits of MSP to the farmers, procurement centres are opened by respective State Government Agencies and Central Nodal Agencies like NAFED, FCI etc. after taking into account the production, marketable surplus, convenience of farmers and availability of other logistics / infrastructure such as storage and transportation etc. large number of the purchase centres in addition to the existing Mandis and depots / godowns are also established at key points for the convenience of farmers to ensure procurement at MSP.

Moreover, if the farmers gets favourable terms to sell his produce or better price than MSP, they are free to sell their produce anywhere other than the Govt agencies.

This information was given by Union Minister for Agriculture and Farmers Welfare Shri Narendra Singh Tomar in a written reply in Lok Sabha today. 

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