Minimum Support Price (MSP) and Agricultural Price Policy
MSP is the minimum price at which the government guarantees to purchase farm produce from farmers. The Commission for Agricultural Costs and Prices (CACP) recommends MSP based on production costs, market prices, demand-supply conditions, and inter-crop price parity. The government announces MSP for 22 mandated crops (14 kharif + 6 rabi + 2 commercial crops). For pulses, MSP has been set at a minimum of 1.5 times the comprehensive cost of production (A2+FL) since 2018-19, following the Swaminathan Committee recommendation.
- CACP, under the Ministry of Agriculture, recommends MSP; Cabinet Committee on Economic Affairs (CCEA) approves
- 22 crops covered: 7 cereals, 5 pulses, 7 oilseeds, 4 commercial crops
- Swaminathan Committee (National Commission on Farmers, 2004-06) recommended MSP at C2 + 50% (comprehensive cost including imputed rent of land)
- Government adopted A2+FL (actual paid costs + imputed family labour) x 1.5 formula since 2018-19
- Price Stabilisation Fund (PSF) used by NAFED/FCI to procure pulses at MSP and manage price volatility
- Buffer stock of pulses maintained to ensure price stability and food security
● Tracked since February 13, 2026 · last seen March 10, 2026 · updates as the daily brief publishes
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