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48
A s udy o Minimum Suppo P ice T ends & Issues in India
D . Pandu ang Sudam ao Dabhade
Email: jdabhad[email p o ec ed]
Manusc ip ID:
JRD -2025(I)-170911
ISSN: 2230-9578
Volume 17
Issue 9(I)|
Pp. 48-52
Sep . 2025
Submi ed: 9 Aug. 2025
Re ised: 20 Aug. 2025
Accep ed: 20 Sep . 2025
Published: 30 Sep . 2025
Abs ac :
The cen al go e nmen has implemen ed he Minimum Suppo P ice Policy o p o ide a
easonable p ice o he a me s om hei a ms. The go e nmen had adop ed he Minimum Suppo
P ice Policy o supply he ood g ains ha we e in sho supply due o he G een Re olu ion in 1960.
While deciding his policy, he go e nmen conside ed all aspec s o he a me s, bu he needs o he
a me s we e con used, will he goods p oduced by he a me s in la ge quan i ies ge a ai oo ing? This
ques ion was be o e he a me s. The a me s el ha he a me s should ge he minimum cos o
p oduc ion o he goods p oduced by he a me s. To esol e he p oblems o he a me s, he go e nmen
appoin ed a commi ee unde he chai manship o L. K. ZA in Augus 1964. This commi ee submi ed i s
epo o he go e nmen . The go e nmen implemen ed he ecommenda ions o his commi ee and
accep ed he Minimum Suppo P ice om 1964. Wo ld Wide Any coun y implemen s he Minimum
Suppo P ice Policy a he in e na ional le el and no laws ha e been made o de e mine he suppo p ice.
I we conside de eloped coun ies, we see ha in Ame ica, ag icul u al p oduc s a e insu ed o help
a me s, and 80% o 90% o he cos o his insu ance is bo ne by he go e nmen . I he e is a d ough in
he coun y, he go e nmen pu chases ag icul u al p oduc s om a me s h ough go e nmen agencies
a he ixed p ice o ag icul u al p oduc s. Acco ding o in e na ional ules, any coun y can p o ide 90%
subsidy o i s ag icul u al p oduc ion GDP, in Eu opean coun ies, subsidies a e gi en o a me s on he
condi ion o eco- iendly a ming. In China, a me s a e gi en subsidies o seeds, wa e , and ag icul u al
equipmen . In he Uni ed S a es, income suppo is gi en o a me s, ha is, a ce ain amoun is gi en o
a me s. India and 54 o he coun ies in he wo ld only p o ide subsidies o a me s.
Key Wo d: minimum Suppo p ice, T ends, Issues.
In oduc ion
The Indian economy is mainly based on ag icul u e. The la ges numbe o people a e
engaged in ag icul u e, wi h he p opo ion o people engaged in ag icul u e being abou 48.718.
In India, co on, suga cane, sesame, whea , jowa , u e c. a e p oduced in ag icul u e on a la ge
scale. In India, a la ge numbe o a me s sell hei goods in a ious ma ke s such as weekly
ma ke s, mandis, and ag icul u al p oduce ma ke s. Sell. Fa me s' goods ge a p ice acco ding o
he season. In he ea ly pe iod o India, many na u al disas e s like d ough s and loods
occu ed, due o which he e was a la ge sho age o ood g ains in India, and people s a ed
dying due o lack o ood. I was agains his backg ound ha he Minimum Suppo P ice
Sys em eme ged in India. Due o d ough s and changes in impo -expo policies, he p ices o
ag icul u al goods change. These changed p ices o ag icul u al goods we e no a o dable o
he common man. As a solu ion o his, he go e nmen adop ed he Public Dis ibu ion Sys em
o p o ide ood g ains o all and adop ed he Minimum Suppo P ice (MSP) o p o ide p ice
suppo .
Quick Response Code:
Websi e:
h ps://j d b.o g/
DOI:
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C ea i e Commons (CC BY-NC-SA 4.0)
This is an open access jou nal, and a icles a e dis ibu ed unde he e ms o he C ea i e Commons
A ibu ion-NonComme cial-Sha eAlike 4.0 In e na ional Public License, which allows o he s o emix,
weak, and build upon he wo k noncomme cially, as long as app op ia e c edi is gi en and he new
c ea ions ae licensed unde he iden ial e ms.
Add ess o co espondence:
D . Pandu ang Sudam ao Dabhade
How o ci e his a icle:
P. S.Dabhade. (2025). A s udy o Minimum Suppo P ice T ends & Issues in India . Jou nal o
Resea ch & De elopmen , 17(9(I)),48-52
O iginal A icle
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'Using new echnology o he ag icul u al sec o and ixing p ices o ag icul u al goods we e included in he
Minimum Suppo P ice Policy.
Resea ch Me hodology:
This esea ch is based on seconda y da a. Go e nmen epo s, esea ch pape s, e c. ha e been used as
seconda y da a. Desc ip i e and analy ical me hods ha e been used o his esea ch.
Minimum suppo p ice o Cha es ics:
No ma ke o ganiza ion can pu chase he p oduce o he a me s a he minimum suppo p ice ixed by he
go e nmen , bu he Food Co po a ion o India helps he a me s in pu chasing i . This p o ides inancial assis ance o
he a me s.
Impo ance o Minimum Suppo P ice:
Globaliza ion and p i a iza ion ha e eed up he ma ke . This makes i impo an o ix a ixed p ice o
a me s' p oduce. I he p ices o ag icul u al p oduce a e ixed, i helps in p o ec ing he in e es s o a me s. The
minimum suppo p ice akes ca e o p ice luc ua ions. The di ec impac o p ice luc ua ions on a me s and hei
p oduce is due o ma ke impe ec ions, because he ma ke wo ks acco ding o ising and alling p ices. I he
minimum suppo p ice is ixed, he a me s a e ully assu ed o ge ing a gua an eed p ice o hei c op. Due o his
assu ance, he p oduce is sold in he ma ke .
The go e nmen 's objec i e behind ixing he minimum suppo p ice:
The minimum suppo p ice is ixed by he cen al go e nmen o ensu e ha a me s do no su e any loss
e en i he p ices o ag icul u al p oduce dec ease in he local ma ke o ganiza ion o ma ke . The main pu pose o he
go e nmen in ixing he minimum suppo p ice is ha a e ixing he minimum suppo p ice, he go e nmen
pu chases he p oduce o a me s a ha p ice.
Fac o s de e mining minimum Suppo p ice:
"Minimum Suppo P ice" i.e. minimum suppo p ice is wha we call he gua an eed p ice. The Ag icul u al
P ice Commission has been es ablished o de e mine he minimum suppo p ice. Howe e , he Ag icul u al P ice
Commission only makes ecommenda ions. The minimum suppo p ice is de e mined by he go e nmen . The
minimum suppo p ice is announced by he cen al go e nmen e e y yea in he mon h o Oc obe .
Ag icul u al P ices Commission o India:
The Commission o Ag icul u al Cos s and P ices (Commission o Ag icul u al Cos s and P ices) is an
a ached wing o he Minis y o Ag icul u e o India. The Commission o Ag icul u al P ices was es ablished in 1965.
The main objec i e o he Commission o Ag icul u al P ices was o use mode n echnology in he ag icul u al sec o
o he coun y and inc ease p oduc i i y. The Commission o Ag icul u al P ices pe o ms he impo an ask o
encou aging a me s and ecommending o he go e nmen o ix he p ice o ag icul u al p oduce. The Commission o
Ag icul u al P ices ecommends o he go e nmen o ix he minimum suppo p ice o a o al o 23 c ops. This
includes 7 ce eals, 5 pulses, 7 pulses and 4 cash c ops/comme cial c ops. Commission o Ag icul u al P ices. The
Commission on Ag icul u al P ices (CARP) p epa es a comp ehensi e ques ionnai e be o e making i s
ecommenda ions and sends i o all he s a es, as well as o he Food Co po a ion o India (FCD), Na ional Ag icul u al
Coope a i e Ma ke ing Fede a ion o India L d. (NAFED), Co on Co po a ion o India (CCI), Ju e Co po a ion o
India (JCI), ade s. A e conside ing he sugges ions made by he s a es and he ins i u ions, i p epa es a epo and
places i be o e he Cabine Commi ee on Economic A ai s (CCEA). The commi ee makes some sugges ions on his
epo and a e ha a inal decision is aken. A e ha , he CARP publishes he minimum suppo p ice on i s websi e.
The salien ac o s ha de e mine he minimum suppo p ice a e as ollows.
1. Demand and supply.
2. P oduc ion expenses.
3. Fluc ua ions be ween domes ic and in e na ional ma ke p ices a e aken in o accoun .
4. Te ms and ade in ag icul u e and non-ag icul u e sec o s.
5. P ice a leas 50 pe cen mo e han he cos o p oduc ion.
6. Impac o p oduc ion on minimum suppo p ice.
The p ocess o de e mining he minimum suppo p ice in India is ca ied ou by he Indian Ag icul u al P ices
Commission. While de e mining he minimum suppo p ice o Indian ag icul u al p oduc s, he go e nmen
mainly includes he cos o a ming om illage o ha es ing and inc eases he minimum suppo p ice by 50
pe cen on he cos o p oduc ion.
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The Cen al Ag icul u al P ices Commission has de e mined h ee o mulas o de e mine he cos o
p oduc ion o a me s.
A2 he i s o mula o de e mining he minimum suppo p ice is 42 housand. Acco ding o his o mula, he a me
incu s p oduc ion cos s o ag icul u e. Fo his, he di ec cos s on seeds, pes icides, chemical e ilize s, medicines,
labo , i iga ion, uel a e aken in o accoun . Howe e , i we look a eali y, apa om hese cos s, a me s incu
a ious cos s o ag icul u al p oduc ion, bu hese a e no included as p oduc ion cos s.
A2+ FL (Family Labo ) A2 + FL (Family Labo ) is he second o mula o de e mining he minimum basic wage.
Acco ding o his o mula, he alue o he labo o he a me and his amily membe s wo king wi h him is aken in o
accoun . Howe e , in eali y, i is di icul o measu e he alue o he labo o each amily membe wo king in he
ag icul u al sec o . And does each pe son wo king in his own a m ge paid o his labo ? This is an impo an ques ion.
The e o e, we see a la ge amoun o hidden unemploymen in he ag icul u al sec o .
C2 Ag icul u al expe Sh i. M.S Swami Na han p esen ed his concep . Acco ding o him, i a me s wan o ge a
ai minimum basic p ice o hei ag icul u al p oduce, hen C2 o mula should be adop ed. This will inc ease he sale
o a me s' ag icul u al p oduce and bene i he a me s. C2 Comp ehensi e means ha he p oduc ion cos o a me s
has been conside ed in a comp ehensi e manne . This includes seeds, pes icides, chemical e ilize s, medicines, labo ,
i iga ion, uel, amily labo , in e es on in es men , and en o ag icul u al land and based on ha , he p oduc ion cos
should be de e mined. I he go e nmen uses his o mula, a me s' goods can ge a be e p ice. Howe e , in eali y,
he Indian Ag icul u al P ices Commission is de e mining he minimum suppo p ice o ag icul u al goods by
conside ing bo h A2 + FL (Family Le e ).A e de e mining he minimum suppo p ice, he go e nmen does no
ac ually pu chase he a me s' goods. Ins ead, he go e nmen pu chases ood g ains h ough local go e nmen
ins i u ions, in which ood g ains a e s o ed in he go downs o go e nmen ins i u ions such as FCI Food Co po a ion
O India, Na ional Ag icul u al Coope a i e o India Limi ed. In he yea 2019-20, he o al ice p oduc ion was 118.43
million ons. Only 43.26 pe cen o his ice p oduc ion was pu chased. Whea p oduc ion was 107.59 million ons.
Howe e , in eali y, he go e nmen pu chased only 38.99 million ons o whea . Compa ed o he o al p oduc ion o
u and moong, he go e nmen pu chased only 5.69 pe cen .
Minimum Suppo /Fai Remune a i e P ices Recommended by CACP and Fixed by Go e nmen (C op Yea )
(₹/q l) Upda ed on18.10.2022
Commodi y
201
3-14
2014
-15
2015
-16
2016
-17
2017
-18
2018
-19
2019
-20
2020
-21
2021
-22
2022
-23
Rec
o
Fixe
d
Rec
o
Fixe
d
Rec
o
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d
Rec
o
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d
Rec
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d
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o
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d
Rec
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d
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d
Rec
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d
Kha i C ops
Paddy
Common
131
0
1310
136
0
1360
141
0
1410
147
0
1470
155
0
1550
174
5
1750
181
5
1815
186
8
1868
194
0
1940
204
0
2040
Paddy(F)/G a
de'A'
134
5
1345
140
0
1400
145
0
1450
151
0
1510
159
0
1590
177
0
1770
183
5
1835
188
8
1888
196
0
1960
206
0
2060
Jowa -Hyb id
150
0
1500
153
0
1530
157
0
1570
162
5
1625
170
0
1700
243
0
2430
255
0
2550
262
0
2620
273
8
2738
297
0
2970
Jowa -
Maldandi
152
0
1520
155
0
1550
159
0
1590
165
0
1650
172
5
1725
245
0
2450
257
0
2570
264
0
2640
275
8
2758
299
0
2990
Baj a
117
5
1250
125
0
1250
127
5
1275
133
0
1330
142
5
1425
195
0
1950
200
0
2000
215
0
2150
225
0
2250
235
0
2350
Maize
131
0
1310
131
0
1310
132
5
1325
136
5
1365
142
5
1425
170
0
1700
176
0
1760
185
0
1850
187
0
1870
196
2
1962
Ragi
150
0
1500
155
0
1550
165
0
1650
172
5
1725
190
0
1900
289
5
2897
315
0
3150
329
5
3295
337
7
3377
357
8
3578
Tu (A ha )
385
0
4300
435
0
4350
442
5
4625
§
462
5
5050
ℭ
525
0
5450
§
567
5
5675
580
0
5800
600
0
6000
630
0
6300
660
0
6600
Moong
450
0
4500
460
0
4600
465
0
4850
§
480
0
5225
ℭ
537
5
5575
§
697
5
6975
705
0
7050
719
6
7196
727
5
7275
775
5
7755
U ad
430
4300
435
4350
442
4625
457
5000
520
5400
560
5600
570
5700
600
6000
630
6300
660
6600
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0
0
5
§
5
ℭ
0
§
0
0
0
0
0
G oundnu
400
0
4000
400
0
4000
403
0
4030
412
0
4220
¤
425
0
4450
§
489
0
4890
509
0
5090
527
5
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555
0
5550
585
0
5850
Sun lowe Se
ed
370
0
3700
375
0
3750
380
0§
3800
385
0§
3950
¤
400
0§
4100
¤
538
5
5388
565
0
5650
588
5
5885
601
5
6015
640
0
6400
Soyabean
Black
250
0
2500
250
0
2500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Soyabean
Yellow
256
0
2560
256
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2560
260
0
2600
267
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¤
285
0
3050
§
339
0
3399
371
0
3710
388
0
3880
395
0
3950
430
0
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Sesamum
450
0
4500
460
0
4600
470
0
4700
480
0
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§
520
0
5300
¤
623
0
6249
648
5
6485
685
5
6855
730
7
7307
783
0
7830
Nige seed
350
0
3500
360
0
3600
365
0
3650
372
5
3825
¤
395
0
4050
¤
586
0
5877
594
0
5940
669
5
6695
693
0
6930
728
7
7287
Medium
S aple Co on
^
370
0
3700
375
0
3750
380
0
3800
386
0
3860
402
0
4020
515
0
5150
525
5
5255
551
5
5515
572
6
5726
608
0
6080
Long S aple
Co on ^^
400
0
4000
405
0
4050
410
0
4100
416
0
4160
432
0
4320
545
0
5450
555
0
5550
582
5
5825
602
5
6025
638
0
6380
Rabi C ops
Whea
140
0
1400
145
0
1450
152
5
1525
162
5
1625
173
5
1735
184
0
1840
192
5
1925
197
5
1975
201
5
2015
212
5
2125
Ba ley
110
0
1100
115
0
1150
122
5
1225
132
5
1325
141
0
1410
144
0
1440
152
5
1525
160
0
1600
163
5
1635
173
5
1735
G am
310
0
3100
317
5
3175
342
5
3500
$
380
0
4000
§
425
0
4400
µ
462
0
4620
487
5
4875
510
0
5100
523
0
5230
533
5
5335
Len il (Masu )
295
0
2950
307
5
3075
332
5
3400
$
380
0
3950
µ
415
0
4250
¤
447
5
4475
480
0
4800
510
0
5100
550
0
5500
600
0
6000
Rapeseed/
mus a d
305
0
3050
310
0§
3100
335
0§
3350
360
0§
3700
¤
390
0§
4000
¤
420
0§
4200
442
5
4425
465
0
4650
505
0
5050
545
0
5450
Sa lowe
300
0
3000
305
0
3050
330
0
3300
360
0
3700
¤
400
0
4100
¤
494
5
4945
521
5
5215
532
7
5327
544
1
5441
565
0
5650
Comme cial
C ops
Ju e*
230
0
2300
240
0
2400
270
0
2700
320
0
3200
350
0
3500
370
0
3700
395
0
3950
422
5
4225
450
0
4500
475
0
4750
Suga caneФ
210
210
220
220
230
230
230
230
255
255
275
275
275
275
285
285
290
290
305
305
Cop a
(Milling)
525
0
5250
555
0
5550
595
0
5950
650
0
6500
750
0
7511
952
0
9521
996
0
9960
103
35
1033
5
105
90
1059
0
Cop a (Ball)
550
0
5500
583
0
5830
624
0
6240
678
5
6785
775
0
7750
992
0
9920
103
00
1030
0
106
00
1060
0
110
00
1100
0
Sou ce: Commission o Ag icul u e Cos & P ices Minis y o Ag icul u e. & Fa me s Wel a e, Go e nmen o India
*: MSP o TD5 a ie y o ju e ill 2014-15, and TDN3 (equi alen o TD5) a ie y o ju e om 2015-16.
£: Bonus o ₹40 pe quin al subjec o liquida ion o 15 million ons o Cen al Pool S ocks. #:10 pe cen bonus i
expo s a e banned.
¤: Including bonus o ₹100 pe quin al. µ: Including bonus o ₹150 pe quin al. $: Including bonus o ₹75 pe
quin al. ℭ: Including Bonus o ₹425 pe quin al. §: Including Bonus o ₹200 pe quin al. Ф: FRP a 9.5% eco e y
a e o yea s om 2012-13 o 2017-18 and a 10% eco e y a e om yea 2018-19 o 2021-22 and a 10.25% om
2022-23.
§: Co esponding o oil con en o 35 pe cen . : S aple leng h (mm) o 24.5-25.5 and mic onize alue o 4.3-5.1. ^^:
S aple leng h (mm) o 29.5-30.5 and mic owa e alue o 3.5-4.3.1.
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Minimum Suppo P ice and Issues:
The main eason o pu chasing whea and ice in la ge quan i ies is ha he go e nmen p o ides ood g ains
o he poo a cheap p ices, which is why he go e nmen does no pu chase o he ag icul u al p oduc s in la ge
quan i ies. Acco ding o he Shan akuma Commi ee, only 6 pe cen o a me s in he coun y bene i om he
minimum suppo p ice. Acco ding o his commi ee, 86 pe cen o small a me s do no go o any ma ke commi ee
o sell hei a m p oduce. I was announced in he 2018 budge ha a me s would be gi en a gua an eed p ice o wo
and a hal imes he cos o p oduc ion. Howe e , ag icul u al expe s ha e aised doub s abou his cos ing me hod ha
he go e nmen uses o co e p oduc ion cos s. Acco ding o ag icul u al expe s, he go e nmen should adop M.S.
Swami Na han’s C-2 o mula o co e ing p oduc ion cos s. Minimum suppo p ice is a decla a ion adop ed by he
go e nmen . To implemen his policy, he go e nmen canno o ce any ma ke o ganiza ion o he ading class o
pu chase a me s' goods a he p ice ixed. I he selle s do no pu chase a me s' goods a he minimum suppo p ice,
he e is no cons i u ional way o a me s o go o cou , because he minimum suppo p ice is a decla a ion and no
cons i u ional p o ision has been made o i in India. Due o his, he minimum suppo p ice policies do no bene i
a me s o a la ge ex en . I a a me ge s a good minimum suppo p ice o a c op in a pa icula pe iod, he a me s
p oduce he same c op in la ge quan i ies, due o which he p ices ecei ed o o he c ops do no inc ease. This has an
ad e se e ec on o he ag icul u al p oduc ion.
Conclusion:
Compa ing he p ices o ag icul u al commodi ies in he wo ld ma ke and he minimum suppo p ice o
ag icul u al commodi ies in India, i is seen ha he e is a di e ence in he p ices o ood g ains in he las 75 yea s.
The minimum suppo p ice policy is cons i u ionally weak, due o which he a me s canno appeal o any cou o
go e nmen o ge he minimum suppo p ice o hei goods. The minimum suppo p ice and he p ice o chemical
e ilize s a e a he same le el in ela ion o Indian ag icul u al commodi ies. This does no bene i he a me s. The
go e nmen has educed he subsidy on chemical e ilize s om 2010 o 2021. This has inc eased he p oduc ion cos
o a me s. The e a e luc ua ions in he p ices o chemical e ilize s such as N. P. K. These p ices a e inc easing and
dec easing a ce ain imes. E en hough he e is no basis o he p ices o ag icul u al commodi ies a he in e na ional
le el, he p ices o ag icul u al commodi ies a e highe han hese Indian ag icul u al commodi ies. The minimum
suppo p ice policy is limi ed o India only. O he coun ies do no implemen he minimum suppo p ice policy a he
in e na ional le el. The p ices o ag icul u al commodi ies a e de e mined by supply and demand. A he in e na ional
le el, only 54 coun ies p o ide subsidies o a me s. In India, he subsidies p o ided o a me s include inancial
assis ance o a me s in he o m o chemical e ilize s, i iga ion, Thibak i iga ion schemes, digging wells, and a m
ponds. No subsidies a e p o ided o selling ag icul u al p oduce in he ma ke .
Re e ence
1. Repo The Jha Commi ee on Food g ain P ices o 1964-64 season, Depa men o Ag icul u e Minis y o ood
and Ag icul u e Go e nmen o India
2. Zee News No -22- 2021 DNA How Does Ame ican Fa me s Ea n Co e s
3. Ramesh Singh (2020) Indian Economy, Mc G aw Hill Publica ion,Chennai, Page no 8.2
4. Ex ension O MSP: Fiscal And wel a e implica ions A s udy o he Planning Commission Oc obe -2007
5. Commission o Ag icul u e Cos & P ices Minis y o Ag icul u e. & Fa me s Wel a e, Go e nmen O India
6. Ex ension O MSP: Fiscal And wel a e implica ions A s udy o he Planning Commission Oc obe -2007
7. S. Mohanakuma , P emkuma Economic & Poli ical Weekly Decembe 1, 2018 ol no 47
8. . The Hindu New Delhi | Sep embe 25, 2020 05:02 ISTMSP, go e nmen p ocu emen key o India’s ood secu i y:
Na end a Modi he P ime Minis e
9. Released a Commemo a i e coin on he 75 h anni e sa y o he Food and Ag icul u e O ganiza ion (FAO).
Oc obe 16, 2020 12:59 pm | Upda ed 11:57 pm IST- New Delhi
