Government procurement of agricultural produce at Minimum Support Price (MSP) in Gujarat has surpassed ₹65,000 crore over the past ten years, with close to 49 lakh farmers across the state benefiting from the scheme, according to official figures released on 19 June. A total of 1.05 crore metric tonnes of produce was procured during the period, reflecting a sharp expansion in both the scale of operations and farmer participation.

Key Figures at a Glance

Official data shows that 48.98 lakh farmers participated in MSP procurement over the decade, with the total value of purchases reaching ₹65,570 crore. The numbers represent a dramatic scaling-up of Gujarat's formal agricultural marketing infrastructure, with farmer participation rising sevenfold and the value of procurement climbing thirteenfold since 2016-17.

In 2016-17, procurement stood at ₹1,775 crore, covering 2.01 lakh farmers. By 2025-26, more than 14 lakh farmers had sold 32.54 lakh metric tonnes of produce through MSP channels, with procurement valued at ₹23,800 crore.

Crop-Wise Breakdown

Groundnut accounted for the largest share, with 52.48 lakh metric tonnes procured and payments of ₹31,941 crore made to farmers — underscoring Gujarat's position as one of India's leading groundnut-producing states.

Cotton ranked second, with 25.23 lakh metric tonnes procured for ₹17,759 crore, including during periods when international cotton prices weakened. Gram, a key rabi crop, saw procurement of 16.81 lakh metric tonnes worth ₹9,549 crore, while tur procurement reached 4.97 lakh metric tonnes, generating payments of ₹3,222 crore. Farmers growing mustard, soybean, urad, and moong also received MSP support during the period.

How MSP Rates Have Changed

MSP rates across several crops have risen considerably over the decade, according to official figures. Paddy MSPs increased by 61%, wheat by 59%, bajra by 108%, hybrid jowar by 127%, groundnut by 102%, and cotton by 99%. Prices are determined by the Commission for Agricultural Costs and Prices (CACP) based on input costs covering seeds, fertilisers, electricity, diesel, and labour. The government maintains that MSP levels are set to provide farmers a margin of approximately 50% above production costs.

Technology and Direct Payments

Authorities highlighted the growing role of technology in streamlining procurement. Payments are routed directly into farmers' bank accounts via the Direct Benefit Transfer (DBT) system, while online registration and SMS-based communication have reduced dependence on intermediaries. MSP is now announced ahead of the sowing season, enabling farmers to make informed cropping decisions.

This comes amid sustained efforts by both the Centre and the Gujarat state government to deepen procurement infrastructure and shield farmers from market volatility and distress sales. With participation and procurement value both at decade highs, the focus is expected to shift toward extending coverage to smaller and marginal farmers who remain outside formal channels.