Minimum Support Price (MSP) Mechanism
The MSP system, recommended by the Commission for Agricultural Costs and Prices (CACP), currently covers 23 crops plus sugarcane (under Fair and Remunerative Price). Since the Union Budget 2018-19, MSP has been set at a minimum of 1.5 times the all-India weighted average cost of production (A2+FL formula).
- 23 crops covered: 7 cereals (paddy, wheat, maize, bajra, jowar, ragi, barley), 5 pulses (chana, arhar, urad, moong, masur), 7 oilseeds (rapeseed-mustard, groundnut, soyabean, sunflower, sesamum, safflower, nigerseed), and 4 commercial crops (cotton, sugarcane, copra, raw jute).
- Procurement agencies: FCI and state agencies (cereals), NAFED and NCCF under PM-AASHA (pulses and oilseeds), CCI (cotton), JCI (jute).
- The Swaminathan Committee (2006) had recommended MSP at 1.5 times the comprehensive cost (C2), which includes imputed rent and interest on owned capital — a higher benchmark than the currently used A2+FL formula.
- Effective procurement remains concentrated in paddy and wheat, with limited market intervention for other MSP crops.
● Tracked since February 07, 2026 · last seen July 12, 2026 · updates as the daily brief publishes
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