Government Boosts Farmer Income with Enhanced MSP and Procurement

The Indian government has bolstered its income support for farmers by fixing Minimum Support Prices (MSPs) for 22 mandated agricultural crops, ensuring that these prices are at least 1.5 times the cost of production. This initiative, announced in the 2018-19 Union Budget, aims to provide farmers with a minimum return of 50% over the all-India weighted average cost of production. The government procures crops through designated agencies like the Food Corporation of India and supports pulses and oilseeds under the PM-AASHA scheme when market prices fall. This has led to significant benefits for farmers, evident in the 2024-25 data showcasing increased procurement and MSP payouts. Additionally, various government-led missions and schemes supplement these efforts, focusing on increasing production, enhancing returns, and providing income support.

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