Gujarat: MSP Procurement crosses Rs 65,000 crore in decade as farmer participation rises seven-fold

Gandhinagar, June 13 (IANS) Gujarat has procured agricultural produce worth Rs 65,570 crore under the Minimum Support Price (MSP) mechanism over the past decade, with nearly 49 lakh farmers benefiting from the programme, according to figures released by the state government.

The data show a significant expansion in MSP procurement in the state, with 1.05 crore metric tonnes of crops purchased between 2016 and 2026.

Farmer participation increased from 2.01 lakh beneficiaries in 2016-17 to more than 14 lakh in 2025-26, while the annual value of procurement rose from Rs 1,775 crore to Rs 23,800 crore during the same period.

The government attributed the increase to reforms in the procurement system and the implementation of a policy under which MSP is fixed at levels intended to provide farmers with returns above their production costs.

Groundnut and cotton accounted for the largest share of procurement in Gujarat.

During the last 10 years, the state purchased 52.48 lakh metric tonnes of groundnut worth Rs 31,941 crore. Cotton procurement stood at 25.23 lakh metric tonnes, with payments totalling Rs 17,759 crore.

The government said cotton procurement helped protect growers from fluctuations in global market prices.

Procurement of other major crops also increased during the period. Farmers received Rs 9,549 crore for 16.81 lakh metric tonnes of gram procured under MSP, while 4.97 lakh metric tonnes of pigeon pea (tur) were purchased for Rs 3,222 crore.

Additional procurement of crops, including mustard, soybean, urad and moong, also benefited small and marginal farmers across the state.

Chief Minister Bhupendra Patel and Agriculture Minister Jitu Vaghani have overseen the expansion of the procurement programme in Gujarat, according to the government.

The state government said MSP rates for several crops have risen substantially over the past decade.

MSP for common paddy increased by 61 per cent, wheat by 59 per cent, bajra by 108 per cent, hybrid jowar by 127 per cent, groundnut by 102 per cent and cotton by 99 per cent.

The government also highlighted changes in procurement procedures, including online registration and Direct Benefit Transfer (DBT) payments.

Under the system, payments are transferred directly into farmers’ bank accounts, reducing the role of intermediaries and improving transparency.

SMS-based communication and digital registration have also streamlined the procurement process for growers.

According to the government, MSP is now announced before the sowing season to help farmers plan crop cultivation.

The prices are recommended by the Commission for Agricultural Costs and Prices after assessing input costs such as seeds, fertilisers, electricity, diesel and labour.

The government said the expansion of MSP procurement and timely payments has contributed to greater confidence among farmers and strengthened rural economic activity across Gujarat.

–IANS

mys/dan