Major Kharif Crops Struggle to Meet MSPs

In the first two months of the harvesting season (October-November), 50% of India’s 14 Kharif crops were sold at least 10% below their respective MSPs. Only three crops—tur, sesame, and non-Basmati paddy—exceeded the minimum support prices (MSPs), while cotton hovered near parity.

Non-Basmati paddy fetched an all-India average price of $0,28 per kg, slightly above its MSP of $0,276 per kg. Meanwhile, maize saw mixed results, selling at $0,27 per kg, which was 3.1% below its MSP of $0,273 per kg. States like Rajasthan, Gujarat, and Uttar Pradesh recorded above-MSP prices, while others such as Odisha and Chhattisgarh reported lower rates.

Challenges in Procurement and Quality Standards

Farmers voiced concerns over maize procurement, particularly the stringent fair average quality (FAQ) standards. “Dismissing produce without proper lab testing undermines the MSP guarantee,” said Rampal Jat, President of Kisan Mahapanchayat. After farmer protests, procurement of moong began in Rajasthan on December 9. Moong, previously rejected for not meeting FAQ, was priced at $0,67–0,73 per kg in Rajasthan’s markets.

Pulses and Oilseeds Performance

Tur emerged as a standout performer, fetching an average price of $1,17 per kg, which was 28.8% above its MSP of $0,91 per kg. In contrast, moong and urad lagged, with moong selling at $0,83 per kg (20.6% below MSP) and urad at $0,87 per kg (2.1% below MSP).

Among oilseeds, sesame stood out, commanding $1,51 per kg, which was 24.9% above its MSP. However, other oilseeds struggled:

• Soybean: $0,54 per kg, 14.8% below MSP.
• Groundnut: $0,69 per kg, 20.8% below MSP.
• Sunflower: $0,74 per kg, 21.7% below MSP.
• Niger seed: $0,98 per kg, 12.2% below MSP.

Coarse Grains Face Downward Pressure

Prices of coarse grains also lagged behind MSPs:

• Jowar: $0,37 per kg, 14.4% below MSP.
• Bajra: $0,32 per kg, 5% below MSP.
• Ragi: $0,41 per kg, 26.2% below MSP.

Nafed, the nodal procurement agency, continued efforts to stabilize prices through the Price Support Scheme (PSS), but market conditions presented challenges.

Kharif Production Estimates

The Agriculture Ministry projects 2024 Kharif food grain production at 164.71 million tonnes, an increase of 5.7% over last year’s 155.77 million tonnes. Key crop estimates include:

• Rice: 119.93 million tonnes.
• Pulses: 6.95 million tonnes.
• Coarse cereals: 37.82 million tonnes.
• Oilseeds: 25.74 million tonnes.

Conclusion

While crops like tur and sesame performed well, many others fell below MSP benchmarks, leaving farmers vulnerable to financial strain. Addressing procurement inefficiencies and ensuring fair prices will be critical as the season progresses.





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