SRINAGAR: The Government of India has acknowledged concerns that farmers in various parts of the country—including Jammu and Kashmir—have been compelled to sell their produce below the cost of production, impacting their income. Responding to a Starred Question in the Lok Sabha on Monday, Agriculture and Farmers Welfare Minister Shivraj Singh Chouhan said that although Minimum Support Prices (MSP) have been raised significantly since 2018-19, not all farmers can access their full benefit.
MPs Satpal Brahamchari and Chandra Prakash Choudhary had asked whether the government was aware of reports of farmers selling crops below cost, particularly in states like Haryana, Jharkhand, and Jammu and Kashmir. In a written reply, the Minister stated that while the Centre sets MSPs for 22 mandated crops based on recommendations from the Commission for Agricultural Costs and Prices (CACP), procurement is not universal.
“The MSP regime ensures a return of at least 50% over the weighted average cost of production,” the statement said, “but farmers have the choice to sell in the open market or to government agencies, depending on which is more beneficial.” Data presented in the Lok Sabha revealed that the government procured 1,175 lakh metric tonnes of crops in 2024-25 (up to June 30), with a total MSP value of Rs 3.33 lakh crore.
For Jammu and Kashmir, where agricultural landholdings are fragmented and marketing options are limited, access to procurement remains a challenge. The region has also seen variable implementation of MSP-linked procurement, particularly for cereals and pulses.
To address price volatility and improve farmer incomes, the Minister highlighted multiple central government schemes. These include the Pradhan Mantri Fasal Bima Yojana (PMFBY) for crop insurance, the Agriculture Infrastructure Fund (AIF) with a corpus of Rs 1 lakh crore for post-harvest storage and processing, and the promotion of Farmer Producer Organisations (FPOs) to strengthen collective bargaining.
The National Agriculture Market (e-NAM) platform and the government’s push for integration with digital commerce networks such as ONDC and GeM were also cited as tools to reduce distress sales.
For organic farming, the government said it is promoting the Paramparagat Krishi Vikas Yojana (PKVY), which supports cluster-based organic production and marketing, including in Jammu and Kashmir’s hill districts.
