As the summer season (April-June) has started, mandi prices of pulses, oilseeds, and paddy are ruling below the Minimum Support Prices (MSP), while only wheat and cotton are traded a tad above the benchmark prices, according to data compiled by the government agencies.
Robust kharif and rabi harvest due to adequate normal monsoon rainfall last year and adequate imports especially pulses and edible oils have kept the prices around the MSP. This is despite the government aiming to purchase record volumes of these commodities at MSP under price support scheme (PSS) of agriculture ministry.
With above normal monsoon rains in 2024 helped the crop output and the projection of a surplus monsoon this year this season may keep the prices of essential food commodities stable in coming months.
Retail food inflation had eased for five consecutive months to 2.69% in March as prices of vegetables, pulses and spices declined with winter harvest arriving in the market. The food inflation rate for March 2025 was lowest since November 2021.
Sources told FE that market prices of common variety paddy are currently about 2% below the MSP of Rs 2300/quintal for the 2024-25 season while harvesting of kharif and rabi crops have been completed. The government’s purchase of paddy in the 2024-25 season (October-September) at MSP has been robust 86 million tonne (MT), an increase of over 5% from the 2023-24 season.
Wheat prices currently are ruling just above the MSP of Rs 2425/quintal as arrivals have peaked and a robust harvest prospects is expected to keep market prices around 3% to 5% above the MSP in the coming months, traders said. Cotton prices are about 3.8% above the benchmark at Rs 7389/quintal.
Market prices of pulses varieties such as chana and tur are ruling below the MSP, are harvesting of rabi crops have been nearing completions and overall crop prospects have been above encouraging.
“Adequate imports and bumper output have brought down prices below MSP after a gap of two years,” a trader of the commodity based in Maharashtra told FE. He said prices are likely to rule at the current level in coming months.
After ruling at elevated levels for two years, the government has approved purchase of over 6 million tonne (MT) of oilseeds – soybean, mustard and groundnut and 5 MT of pulses – tur, chana, urad, masur and moong purchase under PSS in the key growing states for 2024-25 season (July-June).
After record purchase of 3.5 MT of soybean and groundnut in the kharif season, the government agencies have procured 0.34 MT of mustard in the ongoing rabi season so far against sanctioned 2.86 MT.
Agriculture minister Shivraj Singh Chouhan had stated earlier that the government agencies would buy oilseeds and pulses at the MSP for providing remunerative prices to farmers.
In case of key vegetables like onion and potato, market prices are ruling significantly below the prices prevailed a year back while tomato prices are at present higher than the prices prevailed a year ago.
Onion prices are currently ruling at Rs 1006/quintal, which is 36% less than prices prevailed a year ago.