Sarcouncil Journal of Agriculture

Abstract: India’s Minimum Support Price (MSP) system, a cornerstone of agricultural policy since the Green Revolution, has played a vital role in boosting food grain production and ensuring price assurance for farmers. However, this paper highlights the systemic inefficiencies that have emerged over time—such as procurement skewed toward rice and wheat, regional imbalances, exclusion of smallholders, environmental degradation, and mounting fiscal pressure. Drawing on empirical evidence and recent policy debates, the study critiques the limitations of the MSP-centric model and assesses its declining relevance in the context of a diversifying agricultural economy. It explores alternative mechanisms including contract farming, price deficiency payments, warehouse receipt systems, cooperative marketing models, and per-hectare subsidies. These approaches are evaluated for their potential to deliver more inclusive, efficient, and sustainable outcomes. The paper argues that a transition toward a diversified policy framework—focused on market integration, private sector participation, and institutional reform—is essential to meet the evolving needs of Indian agriculture. The study concludes with pragmatic policy recommendations that seek to balance farmer welfare, fiscal responsibility, and long-term environmental sustainability.