How effective is the Minimum Support Price system in protecting Indian farmers from income loss during market price crashes?

Author(s)	Ms. Janika Heragu Raj
Country	India
Abstract	The paper evaluates the performance of the Minimum Support Price (MSP) system in India from 2020-2025. It reviews rising MSPs for key crops, procurement agency performance (e.g., FCI, NAFED, CCI), and implications for farmer incomes, price stability, and food security. Wheat and rice farmers in Punjab, Haryana, and Madhya Pradesh enjoyed the full-scale benefits of MSP with record procurement levels, while pulses, oilseeds, and commercial crop producers suffered from limited or absent procurement. MSP continued to be limited by regional concentration and fiscal support, further constrained by environmental impacts. The paper argues that MSP offers considerable relief to some farmers in the short-run but does not serve as a lasting remedy for agriculture distress . Without broadening procurement practices, direct income support, and sustainable agriculture.
Keywords	Minimum Support Price (MSP) , procurement , farmer income , food security , pulses , oilseeds , agricultural policy, India 2020–2025
Field	Sociology > Economics
Published In	Volume 7, Issue 5, September-October 2025
Published On	2025-10-18
DOI	https://doi.org/10.36948/ijfmr.2025.v07i05.58016

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