Vol. 7, Issue 2, Part G (2025)

This paper critically examines the role and relevance of the minimum support price (MSP) mechanism in the agricultural economy of Haryana over the period 2015 to 2025. MSP has long been a key instrument of agricultural policy in India, aimed at ensuring income stability for farmers and promoting national food security. Haryana, as a major contributor to the central grain pool, presents an important case to evaluate the impact of MSP on cropping patterns, farmer incomes and rural stability. Using a mixed method including time series data analysis and policy review, this study shows that MSP has successfully stabilized farmers’ income for selected crops, particularly wheat and paddy. However, it has also promoted crop monoculture, ecological stress, and fiscal stress. The article argues that while MSP is important, it needs strategic reform to remain sustainable and equitable. This paper critically examines the role and relevance of Minimum Support Price (MSP) in Haryana’s agricultural economy from 2015 to 2025. MSP has long served as a price guarantee mechanism to protect farmers’ food security and ensure food security. Haryana is a major contributor to India’s buffer stock of wheat and rice and has benefited immensely from MSP-backed procurement. However, these policies have also led to unintended economic, environmental, and social consequences, including distorted cropping patterns, groundwater depletion, and increased fiscal burden. This paper evaluates trends in MSP, procurement volumes, and crop choices over a 10-year period, and also analyses the impact of recent policy developments, including the 2020–2021 farmer protests and the repeal of the three farm laws. Using secondary data from government reports, academic studies and policy documents, the study assesses how MSP has affected farmers’ income, market behaviour and rural livelihoods in Haryana. It also examines the systemic limitations of MSP and proposes far-reaching reforms

The study concludes that MSP is essential for agricultural sustainability, but long-term sustainability depends on inclusive, diverse and environmentally friendly agricultural policies that go beyond mere price support. A balanced approach is needed to link farmers’ welfare to national economic and environmental goals.