In a written reply to a question in the Lok Sabha, the minister said that every year, the government fixes the MSP for 22 mandated agricultural crops based on the recommendations of Commission for Agricultural Costs and Prices (CACP), after considering the views of State Governments and Central Ministries concerned.
He explained that the Union Budget for 2018-19 had announced the pre-determined principle to keep MSPs at levels of at least one and half times of the cost of production. Accordingly, the government had increased MSPs for all mandated Kharif, Rabi and other commercial crops with a minimum return of 50 per cent over all India weighted average cost of production from year 2018-19 onwards.
The government offers to procure agricultural crops through designated procurement agencies and farmers have the option to sell their produce to the government agencies or in the open market whichever is advantageous to them. The data show that the increased MSP has benefited farmers of the country, he added.
The government has also taken several other initiatives for the benefit of farmers, which include Pradhan Mantri Fasal Bima Yojana and Restructured Weather Based Crop Insurance Scheme, under which Rs 12,256 crore has been paid to farmers during 2024-25.
Chouhan said that the two insurance schemes were introduced from Kharif 2016 to provide financial support to farmers suffering crop loss arising out of natural calamities, adverse weather incidence and to stabilize the income of farmers, etc. Comprehensive risk insurance is provided under the scheme from pre-sowing to post-harvest losses. This scheme is voluntary for states and farmers as well.
The government has also paid Rs 76,980 crore under the Agriculture Infrastructure Fund (AIF) since it was set up in FY 2020-21, till November 25, 2025. This is a medium-long term debt financing facility for investment in viable projects for post-harvest management infrastructure and community farming assets through interest subvention and credit guarantee support.
As many as 1,39,837 projects have been sanctioned under AIF across the country. These sanctioned projects have mobilised an investment of Rs.1,22,731 crore in the agriculture sector.
Besides, the government is implementing the Agricultural Marketing Scheme and Paramparagat Krishi Vikas Yojana to encourage organic farming in the country and increase the earnings of farmers in the country, the minister added.
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