New Delhi, Dec 2 (NationPress) Minister of Agriculture Shivraj Singh Chouhan announced in Parliament on Tuesday that the Central Government has disbursed Rs 3.47 lakh crore directly to farmers for the acquisition of 1,223 lakh metric tonnes of food grains at the minimum support price (MSP) during the 2024-25 crop year.

In a written response to an inquiry in the Lok Sabha, the minister elaborated that the government determines the MSP for 22 designated agricultural crops each year, based on the suggestions from the Commission for Agricultural Costs and Prices (CACP) and after taking into account the opinions of State Governments and relevant Central Ministries.

He further clarified that the Union Budget for 2018-19 established the principle of maintaining MSPs at a minimum of 1.5 times the cost of production. Consequently, the government enhanced MSPs for all mandated Kharif, Rabi, and other commercial crops, ensuring a minimum return of 50 percent above the all-India weighted average cost of production from the fiscal year 2018-19 onwards.

The government also procures agricultural products through designated agencies, allowing farmers the flexibility to sell their produce either to these agencies or in the open market, depending on what benefits them most. Data indicates that the elevated MSPs have positively impacted the farmers across the country, he noted.

Additionally, the government has initiated several programs for farmers' welfare, including the Pradhan Mantri Fasal Bima Yojana and the Restructured Weather Based Crop Insurance Scheme, under which Rs 12,256 crore has been disbursed to farmers during 2024-25.

Chouhan emphasized that these insurance schemes were rolled out in Kharif 2016 to provide financial assistance to farmers facing crop losses due to natural disasters and adverse weather, aiming to stabilize their income. The scheme offers comprehensive risk insurance covering losses from pre-sowing to post-harvest stages, and participation is voluntary for both states and farmers.

Moreover, the government has allocated Rs 76,980 crore under the Agriculture Infrastructure Fund (AIF) since its inception in FY 2020-21 until November 25, 2025. This fund serves as a medium to long-term debt financing solution for investments in viable projects aimed at improving post-harvest management infrastructure and community farming assets, supported through interest subvention and credit guarantees.

A total of 1,39,837 projects have received approval under the AIF across the nation, mobilizing investments of Rs 1,22,731 crore in the agricultural sector.

Furthermore, the government is executing the Agricultural Marketing Scheme and Paramparagat Krishi Vikas Yojana to promote organic farming in India and enhance farmers' earnings, the minister added.