For the 2025–2026 marketing season, the Cabinet Committee on Economic Affairs (CCEA) approved revised Minimum Support Prices (MSP) for 14 Kharif crops

What does MSP stand for?

MSP is the lowest assured price provided by the government to farmers for their produce, regardless of a decline in market prices. It shields farmers from forced sales and guarantees steady income.

Who Decides It?

The Commission for Agricultural Costs and Prices (CACP) recommends MSP, which is then sanctioned by the Cabinet Committee on Economic Affairs (CCEA).

When was MSP launched?

Initially launched in 1966–67 amid the Green Revolution, mainly for wheat and rice.

MSP Computation Approach

A2+FL Equation:

A2 = Expenditures incurred (labor, seeds, irrigation, etc.)

FL = Estimated value of household labor

Margin: The government guarantees a margin of 50% or greater above production expenses.

Crops Included in MSP

Kharif Harvests:

Grains: Rice, Sorghum, Pearl millet, Finger millet, Corn

Legumes: Tur (Arhar), Moong, Urad

Oilseeds: Peanut, Sunflower, Soybean, Sesame, Niger seed

Commercial: Cotton

Rabi Agriculture:

Wheat, Barley, Chickpea, Lentil (Masur), Canola & Mustard, Safflower

Crops for Sale:

Copra, Jute, Toria, and De-husked Coconut are also included under associated MSPs.

Main Characteristics of MSP:

Announced Biannually: Communicated prior to the Kharif and Rabi planting seasons to assist farmers in their sowing choices.

Prevents Abuse: Guarantees a baseline price to safeguard farmers against market fluctuations and urgent sales.

Promotes Crop Variety: Provides increased MSPs for pulses and oilseeds to transition attention away from water-heavy cereals.

Budget 2018–19 Directive: MSP set at 5 times the production cost (A2+FL) to guarantee equitable earnings for farmers.

Encourages Nutritious Crops: Increased MSP for millets and Shree Anna fosters healthier eating habits and climate-adaptive agriculture.