NEW DELHI: The Centre has decided to accept the recommendations of a Parliamentary committee to make it easier for farmers in more states to sell their crops under the Minimum Support Price (MSP) system. The move aims to ensure that a larger number of farmers benefit from MSP, the government’s assured price mechanism for agricultural produce.
At present, only a limited number of states participate in the Centre’s procurement system for MSP crops.
In its 17th report, the Parliamentary Committee, headed by Kanimozhi Karunanidhi, appreciated the improvements made in the government's procurement process. The panel praised the digitisation of the entire procurement system and the introduction of the “One Nation, One MSP” initiative.
Under this initiative, farmers receive payments directly into their Aadhaar-linked bank accounts within 48 hours of selling their produce.
Despite these improvements, the committee observed that several states continue to rely on the older centralised procurement system for crops such as paddy and wheat. It recommended that the government accelerate the expansion of the decentralised procurement system so that more farmers can access the benefits of MSP. The government has accepted the recommendation and agreed to work towards its implementation.
In the same report, the committee also recommended corrective measures to develop modern storage facilities, strengthen cold chain infrastructure, and adopt technological solutions for perishable commodities such as onions and tomatoes. It noted that post-harvest losses remain a major concern, as disruptions in the supply chain can quickly trigger price spikes.
In another Action Taken Report submitted by the committee headed by Kanimozhi Karunanidhi, the panel reiterated the need for improved storage facilities and cold chain infrastructure for perishable crops, particularly onions and tomatoes. It pointed out that substantial post-harvest losses continue to occur due to inadequate storage and supply chain bottlenecks, ultimately leading to higher prices for consumers.
According to a study cited by the department, nearly 5.31% of onions and 8.37% of tomatoes are lost after harvest because of improper handling and inadequate post-harvest management.
To address the issue, the government has launched several initiatives to improve storage infrastructure and has reported encouraging results. The percentage of usable onions after storage increased from about 63% in the 2024–25 season to around 72% in the 2025–26 season.
Under the Price Stabilisation Fund, the government has established onion storage facilities in Nashik and other districts to minimise post-harvest losses and promote scientific storage practices.
According to the government, these initiatives have improved the quality of stored onions over time, ensuring that a greater proportion of the crop remains usable even after several months in storage.
