Minister of Agriculture Shivraj Singh Chouhan informed Parliament on Tuesday that the Centre has paid Rs 3.47 lakh crore directly to farmers for the purchase of 1,223 lakh metric tonnes of foodgrains at the minimum support price (MSP) during the 2024-25 crop year.
In a written reply to the Lok Sabha, the minister said the government fixes the MSP for 22 mandated agricultural crops every year based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), after considering inputs from state governments and relevant central ministries.
He noted that the Union Budget for 2018–19 had laid down the principle of keeping MSPs at least one-and-a-half times the cost of production. Accordingly, the government increased MSPs for all mandated Kharif, Rabi and commercial crops to ensure a minimum return of 50 per cent over the all-India weighted average cost of production from 2018–19 onwards.
The government procures agricultural crops through designated agencies, while farmers are free to sell to either government agencies or in the open market, whichever is more beneficial. The data, he said, shows that the increased MSP has helped farmers across the country.
The minister also said that several other initiatives have been undertaken for farmers’ welfare, including the Pradhan Mantri Fasal Bima Yojana and the Restructured Weather-Based Crop Insurance Scheme, under which Rs 12,256 crore has been paid to farmers during 2024–25.
Chouhan added that the two insurance schemes, introduced in Kharif 2016, are designed to provide financial support to farmers facing crop loss due to natural calamities, adverse weather and other risks, thereby stabilising their income. The schemes provide comprehensive insurance coverage from pre-sowing to post-harvest and remain voluntary for both states and farmers.
The government has disbursed Rs 76,980 crore under the Agriculture Infrastructure Fund (AIF) since its launch in 2020–21 up to November 25, 2025. The AIF offers medium- and long-term financing for viable projects in post-harvest management and community farming infrastructure, supported through interest subvention and credit guarantee assistance.
A total of 1,39,837 projects have been sanctioned under AIF across the country, mobilising an investment of Rs 1,22,731 crore in the agriculture sector.
In addition, the government is implementing the Agricultural Marketing Scheme and the Paramparagat Krishi Vikas Yojana to promote organic farming and enhance farmers’ income, the minister said.
(IANS)