Minimum Support Price for agricultural produce in India

Date:04-15-2015

GOI (Government of India)  with the help of CACP’s (Commission for agricultural costs and prices) research and respective state governments and central government’s analysis  fix Minimum Support Price (MSP)of major crops every year of both Kharif as well as Rabi season. In Minimum Support Price (MSP) procedure, purchasing and procurement is done by various agencies registered under Central as well as State Government. MSP is minimum price determined by GOI. Producers (farmers) have an option to sell their produce either in open market or to Government agencies at MSP, whichever is more profitable for them.

State Agriculture minister of India Shri Ram Mohan Kundariya  gave information it is being firmly determined that farmers should be given optimum price for their produce and all the states/ centrally governed regions have been given instructions that they all should make amendments in their respective concerned acts according to APMC (Agricultural produce marketing cooperatives) Act, 2003. In this act, various legislations and procedures have been strictly mentioned for standard measuring, standard distribution, cooperative farming, trading measures, e-trading etc. Apart from this, GOI is also strengthening other laws such as Agricultural Marketing Infrastructure, Grading and Standardization (AMIGS) and Gramin Bhandaran Yojana (GBY) which are centrally sponsored subsidy scheme for the farmers to increase investment in this sector from private as well as foreign players. For decreasing the lag in information to farmers in various fronts such as prices prevailing in various markets at various time frame, GOI is also developing a new software known as Marketing Intelligence and Research Network (MIRN) which will have electronic boards in all the mandis in pan-India basis. The details are as follow:

Crops	Grade	2012-13(Ruppes)	2013-14 (Ruppes)	2014-15 (Ruppes)
Paddy	Normal	1,250	1,310	1,360
	Grade A	1,280	1,345	1,400
Jowar	Shrivelled	1,500	1,500	1,530
	Broad	1,520	1,520	1,550
Bajra		1,175	1,175	1,250
Maize		1,175	1,310	1,310
Ragi		1,500	1,500	1,550
Tur Dal		3,850	4,300	4,350
Moong Dal		4,400	4,500	4,600
Udad Dal		4,300	4,300	4,350
Cotton	Medium Staple	3,600	3,700	3,750
	Long Staple	3,900	4,000	4,050
Sunflower seeds		3,700	3,700	3,750
Soyabean	Black	2,200	2,500	2,500
	Yellow	2,240	2,560	2,560
Til		4,200	4,500	4,600