Government advised to buy crops at prevailing market prices

07-Jan-2026 08:49 PM

New Delhi. A leading industry body, the Confederation of Indian Industry (CII), has said that the government's reliance on Minimum Support Price (MSP) for procuring various crops has become excessive,

and it should instead try to buy directly from farmers at prevailing market prices. This would encourage crop diversification and provide a more sustainable option.

In its pre-budget memorandum, the CII also suggested several other important reforms, including the repeal of the outdated agricultural land ceiling law. According to the organization, while this law may have allowed for land redistribution or division in the past,

it is now proving to be an obstacle to increasing farmers' incomes. Successful farmers who acquired land under this ceiling limit are unable to purchase more land, consequently limiting their income.

The memorandum states that market prices for agricultural products often fluctuate, leading to variations in farmers' incomes. When there is a sharp decline in prices and government procurement does not take place, farmers suffer significant financial losses.

Ensuring adequate procurement of crops at MSP is necessary, but the government needs to think beyond this. For the continuous and sustainable progress of the agricultural sector, farmers must receive adequate incentives, especially for pulses, oilseeds, and coarse grains.