Overview
The Minimum Support Price is the price at which the government stands ready to buy 22 crops. Wheat and paddy are bought on a large scale; pulses, oilseeds and copra under the PM-AASHA umbrella; cotton by CCI.
How It Works in Practice
MSP is announced before each sowing season, usually set at least one and a half times the cost of production as calculated by the CACP. Actual buying is large for wheat and paddy, regular for cotton through CCI, and occasional for pulses, oilseeds and copra when market prices fall below MSP.
Rules and Support
The Commission for Agricultural Costs and Prices recommends MSP each season. PM-AASHA includes the Price Support Scheme (physical buying), the Price Deficiency Payment Scheme and private procurement pilots.
What It Means for Farmers and Traders
Procurement agencies buy at notified centres; farmers usually register in advance and are paid into their bank accounts. Grain bought goes to the public distribution system, welfare schemes and buffer stocks.
Companies, Bodies and Schemes
- Food Corporation of IndiaWheat and riceAboutExplore
- NAFEDPulses, oilseeds, onionAboutExplore
- Cotton Corporation of IndiaCottonAboutExplore
- CACPRecommends MSPAboutExplore
Related: All inputs, services and schemes · All crops
Names are listed for reference only and do not imply endorsement or affiliation. The About and Explore buttons open Google in a new tab; results there are generated by Google and third parties, not by this site. Prices, MSP, export rules and schemes change often. Nothing here is financial, legal or purchasing advice. Full disclaimer