MSP purchases of rabi pulses and oil seeds from next month
By Sandip Das
After a record kharif purchase of oilseeds under price support scheme, farmers’ cooperative Nafed and NCCF would commence purchase of rabi oilseeds and pulses from farmers under the minimum support price (MSP) from next month.
Sources said that while purchase of tur, a key kharif pulses variety has commenced, its likely to peak in the next few weeks while purchase of rabi pulses – chana and masur would commence by middle of next month. So far 0.2 MT of tur has been purchased.
For rabi season, the agriculture ministry has sanctioned 1.7 MT of chana and masur to be procured under PSS in Karnataka, Chhattisgarh, Madhya Pradesh and Telangana. For mustard purchase, 0.6 MT has been sanctioned in Chhattisgarh, Madhya Pradesh, Assam and Telangana.
Officials said proposals for purchase of oilseeds and pulses in the rabi season is expected from key producing states Uttar Pradesh, Gujarat and Rajasthan soon. “Procurment operations by agencies under PSS are expected to commence from March 15,”.
Sources said ‘the average mandi price of soybean continues to rule below the MSP of Rs 4,892/quintal announced for the 2024-25 season (July-June) due fall in global soymeal prices. The glut in global supplies has hit domestic prices as a chunk of soybean, with only 18-20% oil content, is used as animal feed.
SOPA cautions against offloading of stocks
The trade body Soybean Processor Association of India (SOPA) on Tuesday urged the agriculture ministry against selling of its oilseed stock by farmers’ cooperative Nafed in open market which would depress the market further and discourage farmers to take soybean in the coming kharif season.
“The current mandi price of soybean is ranging between Rs. 3900 — Rs. 4100 / quintal which is much below the MSP of Rs. 4892/quintal and the move the sell soybean now is ill-timed as it will result in further fall in soybean prices,” Davish Jain, chairman, SOPA, stated in the communication to agriculture minister Shivraj Singh Chouhan.
SOPA has stated that soybean stocks held by agencies such as NAFED and NCCF may be sold in open market only after July 15, 2025, when kharif sowing gets over.
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.
Surge in imports have impacted prices of newly harvested chana and mustard which is expected to rule below MSP.
To boost domestic production of pulses and to reduce the dependence on imports, the Government has allowed the procurement of tur, urad and masur under PSS equivalent to 100% of the production of the state in 2024-25.
In the last rabi season, despite having a record mustard production of 13.16 MT in 2023-24 crop year (July-June), the mandi prices were ruling below the MSP and the government agencies had purchased 1.2 MT of mustard from the farmers in key producing states of Haryana, Madhya Pradesh, Rajasthan and Uttar Pradesh. Traders said that prices were ruling below MSP most parts of last season.
This article has been republished from The Financial Express.