Shivraj Singh Chouhan Highlights MSP Expansion, ₹1.92 Lakh Crore Insurance Payout

The government’s approach combines price assurance, insurance coverage, and direct benefit transfers, creating a comprehensive support system.

Reaffirming the Centre’s commitment to safeguarding farmers’ incomes, Union Agriculture & Farmers’ Welfare Minister Shri Shivraj Singh Chouhan told the Lok Sabha that the government has built a multi-layered “income security shield” for farmers through MSP procurement, crop insurance, and price support mechanisms.

He emphasized that under Prime Minister Narendra Modi’s leadership, “no effort will be spared to protect the annadatta in every situation.”

Record MSP Procurement and Expanded Crop Coverage

The Minister underlined that ensuring MSP is not just about announcements, but actual procurement at scale:

• Record procurement of wheat, paddy, pulses, and oilseeds

• Expansion beyond cereals to include fruits, vegetables, and perishables

• Active intervention when market prices fall to prevent farmer distress

He reiterated that MSP is now fixed with at least 50% profit over production cost, aligning with long-standing farmer demands.

Agricultural Output Up 44%; Income Support Strengthened

Highlighting sectoral growth, Shri Chouhan stated:

• Agricultural production has increased by nearly 44% in recent years

• Simultaneous efforts underway to boost productivity and farmer incomes

The government’s approach combines price assurance, insurance coverage, and direct benefit transfers, creating a comprehensive support system.

PM-AASHA: Protecting Farmers from Price Volatility

The Pradhan Mantri Annadatta Aay Sanrakshan Abhiyan (PM-AASHA) has emerged as a key pillar in stabilizing farmer incomes.

It operates through three mechanisms:

• Price Support Scheme (PSS): Direct procurement of pulses and oilseeds

• Price Deficiency Payment (PDP): Direct transfer of difference between MSP and market price

• Additional interventions when required

This ensures that farmers are protected even when market prices dip below MSP.

₹14,000 Crore Relief in Maharashtra via Digital Transfers

Citing a recent example, the Minister said:

• Maharashtra transferred ₹14,000 crore directly to farmers

• Funds credited within just five days using Farmer ID-based digital systems

This highlights the growing role of technology-enabled direct benefit delivery in crisis response.

Crop Insurance: ₹36,055 Crore Premium, ₹1.92 Lakh Crore Claims

Under the Pradhan Mantri Fasal Bima Yojana (PMFBY):

• Farmers paid ₹36,055 crore as premium

• Received ₹1,92,477 crore in claims

This demonstrates a high return-to-farmer ratio, reinforcing the scheme’s effectiveness.

Key reforms include:

• Coverage extended to individual farmer losses, not just area-based assessments

• Satellite-based remote sensing for accurate yield estimation

• Mandatory crop-cutting experiments at panchayat level for transparency

Price Difference Model Reduces Logistics Burden

The government is increasingly using direct income transfer models instead of physical procurement in some cases.

Example:

• In Madhya Pradesh, farmers received compensation for price gaps directly in their bank accounts

• Eliminates need for transport, storage, and long queues at mandis

This model is being seen as a scalable alternative for other states.

Market Intervention Scheme (MIS) for Perishables

To address volatility in perishable commodities:

• MIS sets model prices for fruits and vegetables

• Government either procures produce or pays the price difference

For crops like tomato, onion, potato, chilli, grapes:

• Centre may cover transportation costs to help farmers access better markets

Coordinated Procurement Ecosystem

The Minister highlighted strong coordination between:

• FCI (Food Corporation of India)

• NAFED

• State government agencies

Purchase centres are being expanded as per need, ensuring farmers can sell produce without distress.

Technology-Driven Transparency and Efficiency

The government is leveraging technology to improve:

• Yield estimation through satellite data

• Faster insurance claim settlement

• Direct benefit transfers via digital platforms

This shift is aimed at reducing delays, disputes, and leakages in farmer support systems.

Key Takeaways

• MSP backed by record procurement and 50% profit margin formula

• ₹1.92 lakh crore insurance claims paid under PMFBY

• ₹14,000 crore rapid relief transfer in Maharashtra

• Strong push for direct income support and digital delivery systems

• Expansion of support to pulses, oilseeds, fruits, and vegetables

Govt Reaffirms Commitment to Farmers

Shri Shivraj Singh Chouhan concluded by reiterating that the government remains firmly committed to ensuring:

• Fair prices for farmers’ produce

• Income stability in times of crisis

• Protection of farmers’ “hard work and honour”

The statement underscores a broader policy direction—moving from price support alone to a comprehensive, technology-enabled income security framework for India’s farmers.