Role of Minimum Support Price (MSP)
in Cropping Pattern
Introduction
Minimum Support Price (MSP) is a policy tool used by the Government of India to ensure
farmers receive a fair price for their produce. MSP acts as a safety net for farmers against
market fluctuations. Over time, MSP has significantly influenced India’s cropping patterns—
the proportion of area under different crops—leading to both positive and negative
consequences for sustainability, regional balance, and food security.
What is MSP?
- MSP is the pre-announced price at which the government procures crops from farmers,
regardless of market prices.
- Declared by the Cabinet Committee on Economic Affairs (CCEA) on the recommendation of
the Commission for Agricultural Costs and Prices (CACP).
- MSP is announced for 23 crops including:
- 7 cereals (paddy, wheat, maize, etc.)
- 5 pulses (tur, moong, urad, etc.)
- 7 oilseeds (groundnut, mustard, etc.)
- 4 commercial crops (cotton, sugarcane, jute, copra)
MSP’s Influence on Cropping Patterns
1. Skewed Cropping in Favor of MSP-backed Crops
Example: In Punjab, area under paddy increased from 6.87 lakh hectares in 1970 to 30 lakh
hectares in 2020, despite water scarcity. This is largely due to assured procurement by FCI
at MSP.
2. Regional Disparities
MSP benefits are unevenly distributed. In states like Bihar, Odisha, and Eastern UP, farmers
lack procurement infrastructure.
3. Neglect of Coarse Cereals, Pulses, and Oilseeds
Despite MSP announcements, crops like millets, pulses, and oilseeds are under-cultivated
due to weak procurement mechanisms.
Data to Support Impact
Crop MSP (2023-24) Procurement Area Share
₹/quintal Volume (2022-23)
Paddy ₹2,183 56 million tonnes 36%
Wheat ₹2,125 26 million tonnes 29%
Pulses (Tur) ₹7,000 <1 million tonnes ~8%
Maize ₹2,090 Negligible ~4%
Environmental Impact of MSP-induced Cropping Patterns
- Over-extraction of groundwater in Punjab and Haryana due to paddy.
- Soil degradation due to monoculture of rice-wheat.
- Stubble burning causes air pollution in North India.
Recent Reforms and Diversification Efforts
- PM-AASHA Scheme aims to improve procurement of pulses and oilseeds.
- Millet Mission (2023) promotes millet cultivation.
- Crop Diversification Programmes in Punjab and Haryana.
- Improved procurement of pulses in Madhya Pradesh.
Way Forward
1. Expand MSP Procurement to pulses and oilseeds.
2. Strengthen procurement infrastructure in underserved regions.
3. Promote climate-resilient and region-suitable crops.
4. Link MSP to sustainability and nutrition goals.
5. Encourage decentralized procurement through SHGs, FPOs.
Conclusion
MSP has been a double-edged sword—providing price assurance but distorting cropping
patterns. A reoriented MSP policy, aligned with regional suitability, market demand, and
environmental concerns, is crucial for sustainable agriculture.
