Central Government Announces Crop Procurement at 50% MSP and Subsidized Fertilizer for Farmers

On December 6, Union Minister for Agriculture, Farmers Welfare, and Rural Development, Shri Shivraj Singh Chouhan, addressed the Rajya Sabha on several key issues, including the Minimum Support Price (MSP) and loan waivers for farmers. Under the leadership of Prime Minister Shri Narendra Modi, the central government has consistently increased MSP over the past decade. Shri Chouhan affirmed the government's commitment to determining MSPs with a profit margin exceeding 50% and procuring crops directly from farmers.

Farmers to Benefit from Over 50% Profit on Crop MSP

Union Agriculture Minister Shri Chouhan assured that the government will procure crops at MSP and continue to provide farmers with rates that include a profit margin of more than 50% over their cost of production. He emphasized that the Modi government guarantees promises with action. Referring to a landmark decision in 2019, he highlighted that the government fixed MSP rates by adding a 50% profit margin to production costs. He criticized the previous Congress government for failing to offer farmers more than 50% profit, asserting that the current administration is committed to providing fair prices and ensuring farmer welfare.

Substantial Increase in Agricultural Budget to Boost Farmers' Income

This year, the agricultural budget witnessed a significant rise, underscoring the government's commitment to the sector. Shri Chouhan shared that the budget allocation for agriculture has grown from ₹21,900 crores in 2013-14 to ₹1,22,528 crores. The government has outlined six priorities to enhance farmers' welfare:

1. Increasing agricultural production.
2. Reducing production costs.
3. Providing compensation for crop losses under the Pradhan Mantri Fasal Bima Yojana.
4. Ensuring fair prices for farmers' produce.
5. Diversifying agriculture.
6. Promoting natural and organic farming to increase farmers' income sustainably, reducing reliance on loan waivers.

Fertilizer Subsidies and Adequate Supply for Farmers

The Union Agriculture Minister also highlighted the government's efforts to ensure the availability of fertilizers and subsidies for farmers. Last year, the government provided ₹1.94 lakh crore in fertilizer subsidies, enabling farmers to access fertilizers at affordable prices. Shri Chouhan noted that the government subsidized fertilizer costs by ₹2,100 per bag, ensuring timely availability. Efforts are also underway to promote organic and natural farming practices to mitigate the adverse effects of the excessive use of chemical fertilizers.