Price Support Scheme is a central government scheme that makes sure farmers get fair and remunerative prices for their agricultural produce. By offering a safety net against volatile market prices, this scheme supports crop production, boosts farm income, and helps keep food supply costs stable for consumers across the country. For the Rabi 2026 season, the government has approved the procurement of gram, mustard and lentils under this scheme at the declared Minimum Support Price (MSP).
Price Support Scheme - Introduction
Price Support Scheme acts as a strong safety net for cultivators by making sure they receive fair payment for their hard work. This scheme makes agriculture more viable by protecting farmers from the risks of sudden market price drops.
This scheme is implemented across the state to cover essential crops, including bajra, jowar, maize, paddy, cotton, tur, moong, urad, groundnut, sesamum, wheat, gram, mustard, and sugarcane. The Department of Agriculture and Cooperation runs the procurement process for oilseeds, pulses and cotton through NAFED, which acts as the official nodal agency. In Assam, the Food, Civil Supplies and Consumer Affairs Department also takes up procurement of paddy and rice through agencies such as FCI, ASAMB, NCCF, NEFed and NACOF at the MSP fixed by the Government of India.
If market prices fall below the government-declared Minimum Support Price (MSP), this scheme comes into action to procure the produce until market stability returns. For instance, if a farmer named Ramesh grows mustard and market prices suddenly crash due to excess supply, this scheme makes sure his produce is purchased at the promised MSP, preventing a financial crisis.
For the Rabi 2026 season, the central government has approved the procurement of gram, mustard and lentils under the Price Support Scheme. The scheme is part of the PM-AASHA umbrella, which also includes the Price Deficiency Payment Scheme, Market Intervention Scheme and Price Stabilization Fund. New MSP rates for the 2026-27 marketing season have also been announced for Kharif and Rabi crops.
Key Information
| Key Details | Information |
|---|---|
| Scheme Name | Price Support Scheme |
| Target Audience | Individual Farmers |
| Beneficiary State | Assam |
| Primary Benefit | Direct Financial Procurement at MSP |
| Implementation Method | Direct Benefit Transfer (DBT) |
| Nodal Agency | NAFED and state procurement agencies |
| Main Department | Agriculture and Cooperation, Food, Civil Supplies and Consumer Affairs Department |
Benefits
This scheme provides a strong buffer against economic losses in farming. When market prices fall below the government-set MSP, state and central agencies step in to purchase crops directly at that fair price, provided the produce meets the Fair Average Quality (FAQ) standards.
By making sure income remains steady even during market fluctuations, this scheme prevents economic loss and encourages higher agricultural output. It maintains a balance between supporting production and keeping essential supplies affordable for consumers. Under the 2026-27 MSP revision, the government has kept every mandated crop at or above 1.5 times its all-India cost of production, which means a better return for farmers.
Eligibility
To get the benefit of this scheme, a farmer should meet the following criteria:
- The applicant must be a farmer residing in the state of Assam.
- The produce should be sold at the designated APMC centers managed by the nodal procurement agency.
- Government employees are not eligible to take part in this scheme.
Application Process
Farmers need to follow the offline application process to enroll in the scheme. The steps are given below.
STEP 1 - Visit the official portal of the state agriculture or food and civil supplies department to download the application form for the Price Support Scheme.
STEP 2 - Fill in all personal and land details clearly and correctly in the form.
STEP 3 - Attach all the required supporting documents as listed in the scheme rules.
STEP 4 - Submit the completed application form at the local designated government office or the notified procurement center.
STEP 5 - Stay in touch with the department officials to track the application status and clear any queries regarding the checking process.
Once the officials approve the application, the farmer receives the benefit through direct procurement or bank transfer as per the specific rules.
Documents
Farmers should keep the following documents ready to make sure the application process goes smoothly:
- Land revenue documents to verify clear ownership of the agricultural land.
- Valid identification proof such as Aadhaar card or voter ID.
- Updated bank account details for direct payments.
- Relevant agricultural land documents.
- Current income certificate.
- Recent passport-sized photographs.
References
For the latest updates on MSP procurement approvals for the Rabi 2026 season, visit the Economic Times report on Price Support Scheme procurement.
FAQ's
What happens when prices of commodities fall below the MSP?
When market prices drop below the MSP, state and central notified agencies purchase the commodities directly at the MSP, assuming the produce meets Fair Average Quality (FAQ) standards.
How does this scheme protect the farmer?
By guaranteeing a floor price for the produce, this scheme prevents financial loss caused by market volatility, making sure farmers do not suffer unfair economic losses.
Who can get the benefit of this scheme?
Any practicing farmer residing in the state of Assam can get the benefit of this scheme.
Why is price support important?
Price support is very important for keeping agricultural productivity steady. It encourages consistent investment in farming by guaranteeing that even in times of oversupply, the produce is valued at a stable, profitable rate.
How can a farmer get this scheme benefit?
Farmers can get these benefits by selling their eligible produce at the APMC centers operated by the nodal procurement agency in their area.
How should I apply for this scheme?
Download the application form from the official Price Support Scheme website, complete it, and submit it to the appropriate government office locally.
Which documents are needed to apply for this scheme?
Identification proof, land-holding documents, valid bank account details, agricultural records, an income certificate, and recent photographs are required.