MSP, APMC & Procurement
Indian Agriculture · MSP, APMC और खरीद
📋Quick Overview
Minimum Support Price (MSP) is the price at which the government guarantees to purchase crops from farmers to protect them from price volatility. The Commission for Agricultural Costs and Prices (CACP) recommends MSP to the government for 23 crops. The Food Corporation of India (FCI), established in 1965, is the main government agency for procurement, storage, and distribution of food grains. Agricultural Produce Market Committees (APMCs) are state-regulated markets (mandis) where farmers sell their produce. The e-NAM (Electronic National Agricultural Market) platform, launched in 2016, connects over 1000 mandis online.
MSP = Minimum Support Price — government's price floor for crops. If market price falls below MSP, govt buys at MSP. Currently for 23 crops. CACP recommends; Cabinet Committee on Economic Affairs (CCEA) announces. MSP is NOT a legal guarantee — only government commitment.
📖Key Agricultural Institutions & Their Roles
| Institution | Full Name | Established | Key Role |
|---|---|---|---|
| CACP | Commission for Agricultural Costs and Prices | 1965 | Recommends MSP to govt for 23 crops; advisory body under MoAFW; considers cost of production + reasonable margin |
| FCI | Food Corporation of India | 1965 (January 14) | Procures (buys from states at MSP), stores, and distributes food grains (rice, wheat); manages buffer stocks; under MoCAF&PD |
| CCI | Cotton Corporation of India | 1970 | Procurement and marketing of cotton; provides MSP support to cotton farmers; under Ministry of Textiles |
| NAFED | National Agricultural Cooperative Marketing Federation | 1958 | Procures pulses, oilseeds, dry fruits under MSP operations; implements Price Support Scheme (PSS) for CACP-recommended crops |
| APMC | Agricultural Produce Market Committee | State legislation | State-regulated mandis; farmers required to sell through APMCs in regulated states; mandi tax levied; commission agents; ensures price discovery |
| e-NAM | Electronic National Agriculture Market | April 14, 2016 | Online pan-India trading platform connecting 1000+ APMC mandis; farmers can sell to buyers anywhere in India; transparent price discovery; under SFAC |
| SFAC | Small Farmers Agri-Business Consortium | 1994 | Promotes agri-business; manages e-NAM platform; supports FPOs (Farmer Producer Organisations); under MoAFW |
| Warehousing Development & Regulatory Authority (WDRA) | WDRA | 2010 | Regulates warehouse system; issues negotiable warehouse receipts (NWR) to farmers — can use as collateral for loans |
📝MSP — 23 Crops (Categories)
| Category | Crops Covered |
|---|---|
| Kharif Crops (14) | Paddy (Rice), Jowar, Bajra, Maize, Ragi, Arhar/Tur, Moong, Urad, Cotton (medium + long staple), Groundnut, Sunflower, Soybean, Sesame, Nigerseed |
| Rabi Crops (6) | Wheat, Barley, Gram, Masur (Lentil), Rapeseed/Mustard, Safflower |
| Other Crops (3) | Jute, Copra, De-husked Coconut |