New Delhi, Dec 2 (LatestNewsX) – In a parliamentary address on Tuesday, the Minister of Agriculture Shivraj Singh Chouhan announced that the Central Government has already set aside Rs 3.47 lakh crore to purchase 1,223 lakh metric tonnes of food grains at the minimum support price (MSP) for the 2024‑25 crop year.
The MSP is fixed each year for 22 mandated crops, following the recommendations of the Commission for Agricultural Costs and Prices (CACP) and after taking into account the views of State Governments and the relevant Central Ministries.
He reminded lawmakers that the 2018‑19 Union Budget introduced a rule that MSPs should be no less than 1½ times the cost of production. From 2018‑19 onward, the policy has been applied to all Kharif, Rabi and other commercial crops, ensuring a minimum return of 50 percent over the national weighted average cost of production.
Farmers can choose to sell their produce through designated procurement agencies or in the open market—whichever is more profitable. The higher MSP, he added, has already yielded tangible benefits for farmers across the country.
Other measures aimed at supporting farmers include the Pradhan Mantri Fasal Bima Yojana and the Restructured Weather‑Based Crop Insurance Scheme, through which Rs 12,256 crore was paid during 2024‑25. Launched in Kharif 2016, these voluntary schemes provide comprehensive risk cover from pre‑sowing to post‑harvest losses, helping to cushion farmers against natural calamities, adverse weather and income instability.
The Agriculture Infrastructure Fund (AIF) has distributed Rs 76,980 crore since its inception in FY 2020‑21 up to 25 November 2025. The AIF offers medium‑to‑long‑term debt financing for viable projects in post‑harvest infrastructure and community farming assets, giving interest subvention and credit‑guarantee support. A total of 139,837 projects have been sanctioned under the fund, mobilising an investment of Rs 122,731 crore in the agriculture sector.
Finally, the government is rolling out the Agricultural Marketing Scheme and the Paramparagat Krishi Vikas Yojana to promote organic farming and raise farmers’ earnings.
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