Ahmedabad: Procurement of agricultural produce at the Minimum Support Price (MSP) has witnessed a significant rise over the past decade in Gujarat, helping lakhs of farmers become more self-reliant. According to official data, the state government has procured 1.05 crore metric tonnes of agricultural produce worth ₹65,570 crore at support prices during the last 10 years.

Key figures at a glance

🔹 Purchase at support price in the last 10 years: ₹65,570 crore
🔹 Total produce purchased: 1.05 crore metric tonnes
🔹 Beneficiary farmers: More than 48.98 lakh
🔹 Groundnut purchase: ₹31,941 crore
🔹 Cotton purchase: ₹17,759 crore
🔹 Annual beneficiary farmers: Increased from 2 lakh to 14 lakh
🔹 Increase in purchase value: 13 times
🔹 Increase in MSP: From 54% to 127%

Groundnut and cotton farmers benefit the most

Groundnut and cotton are of special importance in Gujarat’s agricultural economy. Over the last 10 years, ₹31,941 crore has been paid to farmers through the procurement of 52.48 lakh metric tonnes of groundnut. Even amid a decline in global cotton prices, the government provided a protective cushion of ₹17,759 crore to farmers by procuring 25.23 lakh metric tonnes of cotton.

Big benefit to gram and tur farmers too

₹9,549 crore has been paid to farmers through the purchase of 16.81 lakh metric tonnes of gram, a key rabi crop. Meanwhile, ₹3,222 crore has been paid through the procurement of 4.97 lakh metric tonnes of tur, an important crop for farmers in central and south Gujarat.

Apart from this, thousands of small and marginal farmers have also benefited directly from the procurement of crops such as raido, soybean, urad and moong, the official note said.

7-fold increase in 10 years

According to the government, in 2016-17, agricultural produce worth ₹1,775 crore was procured from just 2.01 lakh farmers. Today, the situation has changed significantly. During 2025-26, 32.54 lakh metric tonnes of produce worth ₹23,800 crore was procured from more than 14 lakh farmers. The seven-fold increase in the number of beneficiary farmers and the 13-fold rise in procurement value is considered proof of the success of the scheme.

Support prices announced before sowing

To help farmers plan their crops, the central government now announces MSP before sowing. Support prices are fixed by the Agricultural Costs and Prices Commission (CACP) after assessing costs such as seeds, fertilizers, electricity, diesel and labour.

The government claims that MSP is fixed in a manner that ensures farmers receive about 50% profit over their cost of production.

Increased transparency through DBT

The use of technology in the procurement process has greatly benefited farmers. Since payments are deposited directly into farmers’ bank accounts through DBT (Direct Benefit Transfer), the role of middlemen has reduced and transparency has increased.

Online registration and an SMS-based system have also reduced the need for farmers to stand in long queues.

Significant increase in MSP

Support prices for various crops have increased significantly over the past decade. There has been a 61% increase in common paddy, 59% in wheat, 108% in bajra, 127% in hybrid sorghum and 102% in groundnut. The MSP for cotton has also increased by up to 99%.

According to farmers, procurement at support prices and timely payments have increased confidence in the agriculture sector and given new strength to the rural economy. DeshGujarat