An Analysis of Minimum Support Price and Its Impact on Agricultural Performance in India

Author(s)	Ms. Baleshwari Panchal
Country	India
Abstract	This study analyses trends in the Minimum Support Price (MSP) and its relationship with agricultural production, yield, and gross cropped area across major crop categories in India—cereals, pulses, oilseeds, and commercial crops. Using a quantitative and descriptive research design, the study relies on secondary time-series data from the Commission for Agricultural Costs and Prices (CACP) and the Statistical Annexure (2024–25) of the Government of India. MSP data for 2015–16 to 2024–25 and agricultural indicators for 2014–15 to 2023–24 are examined through descriptive statistics, trend analysis, and graphical representation. The findings show a sharp increase in MSPs after 2018–19 following the implementation of the Swaminathan Commission’s recommendation, followed by moderated growth in subsequent years. Despite rising MSPs, gains in production and yield remain modest, indicating limited productivity response to price incentives alone. Cereals benefit from assured procurement, while pulses, oilseeds, and commercial crops face productivity and climatic constraints. The study concludes that MSP is an essential safety net but insufficient for sustainable agricultural growth without complementary productivity- and market-oriented interventions.
Keywords	Minimum Support Price; Agricultural Productivity; Gross Cropped Area; Indian Agriculture
Published In	Volume 8, Issue 1, January-February 2026
Published On	2026-02-09

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