Centre Pays ₹3.47 Lakh Crore to Farmers for MSP Procurement in 2024-25, Says Agriculture Minister
New Delhi
Minister of Agriculture Shivraj Singh Chouhan on Tuesday informed Parliament that the Centre has disbursed ₹3.47 lakh crore directly to farmers for procuring 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, he said MSP for 22 mandated crops is fixed annually based on recommendations of the Commission for Agricultural Costs and Prices (CACP), after consultations with state governments and relevant central ministries.
Chouhan recalled that the Union Budget for 2018-19 had laid down the principle of setting MSPs at least 1.5 times the cost of production. Since then, MSPs for all mandated Kharif, Rabi and commercial crops have been revised to ensure farmers receive a minimum return of 50 per cent over the all-India weighted average cost of production. He said procurement is carried out through designated government agencies, and farmers retain the flexibility to sell either to the government or in open markets, depending on what benefits them more.
The minister said data shows that this enhanced MSP regime has significantly benefited farmers nationwide. Apart from MSP procurement, the Centre has launched multiple measures to enhance farmers’ financial security. Under the Pradhan Mantri Fasal Bima Yojana and the Restructured Weather Based Crop Insurance Scheme, ₹12,256 crore has been paid to farmers during 2024-25. These insurance schemes, introduced from Kharif 2016, provide comprehensive risk coverage from pre-sowing to post-harvest stages for losses caused by natural calamities or adverse weather. Both schemes remain voluntary for states and farmers.
Chouhan further stated that the government has disbursed ₹76,980 crore under the Agriculture Infrastructure Fund (AIF) since its launch in 2020-21 until November 25, 2025. The fund offers medium- to long-term debt financing for post-harvest management infrastructure and community farming assets through interest subvention and credit guarantee support.