- Why in news
- On 8 July 2026, the Agriculture Minister approved procurement of 87,226 MT of copra at MSP under the Price Support Scheme, and 96,879 MT of Totapuri mangoes under the Market Intervention Scheme, in Tamil Nadu for 2026.
- What it is
- The Price Support Scheme (PSS) lets the Centre buy pulses, oilseeds and copra from farmers at MSP when market prices fall below it. Copra is bought through central nodal agencies on a state's proposal. The Market Intervention Scheme (MIS) covers perishable horticultural crops not under MSP, with a market intervention price and losses shared between Centre and state.
- Copra quantity
- Approved procurement is 87,226 MT: 87,000 MT milling copra and 226 MT ball copra.
- Trigger
- The approval followed a proposal from the Tamil Nadu government.
- MSP basis
- MSP is announced by the Centre on the recommendation of the Commission for Agricultural Costs and Prices (CACP).
- Crops approved
- Uttar Pradesh gets approval for moong, urad and groundnut. Gujarat, Haryana and Tamil Nadu get approval for moong only.
- Uttar Pradesh package
- The approvals for Uttar Pradesh have a total MSP value of over ₹1,490 crore, the largest among the four states.
- Nature of scheme
- PSS is run by the Centre through central nodal agencies, and procurement of a crop happens when market prices fall below MSP.
Don’t confuse with PSS vs MIS: PSS buys crops that have an MSP (pulses, oilseeds, copra) at MSP. MIS buys perishable horticultural crops without MSP at a market intervention price, on a state's request.
Don’t confuse with Milling copra vs ball copra: Both are forms of copra with separate MSPs. Milling copra is used for oil extraction; ball copra is mostly for edible use.
Don’t confuse with PSS vs PDPS: Under PSS the government physically procures the crop. Under the Price Deficiency Payment Scheme, the farmer is paid the difference between MSP and the market price without procurement.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Assured purchase at MSP protects coconut and mango growers from distress sales when prices fall.
- Procurement gives income security to farmers in a region dependent on plantation crops.
- Assures MSP to pulse and oilseed growers and protects them from distress sales at harvest.
- Supports domestic pulse and oilseed output, which can reduce import dependence.
Problems
- Procurement works only when a state proposes it, so coverage is uneven across states and crops.
- Storage, disposal of stock and fiscal cost of MIS losses strain the Centre and states.
- Procurement is limited by state-wise quantity caps, so many farmers may not benefit.
- Procurement is concentrated in a few states, which leaves other regions' farmers with little assurance.
Way forward
- Strengthen price-deficit and e-NAM-linked market options alongside procurement.
- Build processing and storage near growing areas to cut dependence on distress-time buying.
- Widen procurement coverage and reduce quantity caps, with timely payment through direct transfer.
- Improve storage, and procurement and price information to farmers.
Put in your answer
MIS example: Totapuri mango procurement under MIS shows support for perishables outside the MSP list.
PSS in Uttar Pradesh, Summer 2026: An example of MSP support beyond cereals: moong, urad and groundnut procurement with MSP value over ₹1,490 crore.
- 2018Mains GS3 · Q3Meaning of MSP and its role in escaping low-income trap
- 2017Mains GS3 · Q15Significance of MSP, crop insurance for small and marginal farmers
- 2024Mains GS3 · Q14Importance of buffer stocks for stabilising agricultural prices; storage challenges
- 2026Mains GS3 · Q14Types of agricultural subsidies and supports; related WTO Agreement on Agriculture issues
- 2020Prelims Q69Whether MSP procurement is unlimited for cereals, pulses, oilseeds
- 2004Prelims Q77Food grain procurement target versus open-ended; MSP only for cereals
- 2009Prelims Q9Whether CACP recommends MSP for 32 crops; National Food Security Mission
- 2023Prelims Q27Niger seed MSP, Kharif cultivation, and tribal oil use statements
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Lasting MSP procurement mechanism; the release gives state-specific quantities with few concept facts, so no question.
Worth revising until Prelims 2028: most news questions come within two years of the event.