Which crops are covered under MSP in India?

In one line

The rule

The Minimum Support Price (MSP) is the price at which the government promises to buy certain crops from farmers, to ensure they get a fair income even if market prices fall.

Let's understand it simply

Imagine you are a farmer growing wheat. After harvest, you take your crop to the market, but this year, prices are very low. You worry you may not even recover your costs. The government steps in and says, “We promise to buy your wheat at ₹2,000 per quintal, no matter what the market price is.” This is the Minimum Support Price (MSP).

But not every crop gets this guarantee. The government chooses certain crops that are important for food security and farmers’ income. These are called MSP crops.

How it works

1. The government selects a list of crops for MSP, based on what is important for food and farmers.
2. Every year, the MSP for each crop is announced before the sowing season.
3. If market prices fall below MSP, the government buys these crops at MSP through agencies like FCI (Food Corporation of India).
4. This helps farmers avoid distress sales (selling at very low prices).
5. The list of MSP crops is reviewed and updated from time to time.

The story behind it

The MSP system started in the 1960s, during the Green Revolution. India faced food shortages and wanted to encourage farmers to grow more wheat and rice. The government needed a way to support farmers and ensure enough food for everyone. MSP was introduced for wheat and paddy (rice) first. Over time, more crops were added as India’s needs changed.

Where you see it in real life

• Wheat and Paddy (Rice): Most common MSP crops. Farmers in Punjab and Haryana often sell these to government agencies at MSP.
• Pulses (like Arhar, Moong, Urad): MSP helps encourage farmers to grow more pulses, reducing imports.
• Oilseeds (like Mustard, Groundnut, Soybean): MSP supports farmers growing these, important for cooking oil.
• Cotton: MSP helps cotton farmers, especially in Maharashtra and Gujarat, when prices crash.
• Sugarcane: Has a similar price support called Fair and Remunerative Price (FRP), but is not strictly under MSP.
• Maize, Barley, Jowar, Bajra, Ragi: Other cereals included in MSP, important for food security in different regions.

Why it matters

• Protects farmers: Ensures they get a fair price, even if the market price drops.
• Food security: Encourages production of key crops needed for the country.
• Reduces farmer suicides: By giving income security, especially in bad crop years.
• Guides cropping pattern: Farmers may choose to grow MSP crops, knowing they have a safety net.

Common mistakes

• Thinking all crops are covered: Only 23 main crops have MSP, not every crop grown in India.
• Assuming MSP means government buys everything: The government mainly buys wheat and rice in large quantities; for other crops, procurement is limited.
• Confusing MSP with market price: MSP is a minimum guarantee, not always the price farmers get in the open market.
• Believing sugarcane MSP is the same: Sugarcane has FRP, which is similar but not exactly MSP.

Remember it

Think: “MSP = 23 crops, mainly cereals, pulses, oilseeds, and a few others.”

List of MSP crops (as of 2023)

Cereals (7)

• Paddy (Rice)
• Wheat
• Maize
• Barley
• Jowar (Sorghum)
• Bajra (Pearl Millet)
• Ragi (Finger Millet)

Pulses (5)

• Gram (Chana)
• Arhar/Tur (Pigeon Pea)
• Moong (Green Gram)
• Urad (Black Gram)
• Masur (Lentil)

Oilseeds (7)

• Groundnut
• Soybean
• Sunflower seed
• Sesamum (Til)
• Nigerseed
• Mustard
• Safflower

Commercial crops (4)

• Cotton
• Copra (Dry Coconut)
• Raw Jute
• Sugarcane (under FRP, not MSP)

Note: Sugarcane is under FRP, not MSP, but often discussed together.