Call for effective policies to ensure MSP-based crop procurement

17-Oct-2025 05:30 PM

Mumbai. The President of the Solvent Extractors' Association of India (SI), a leading organization in the domestic vegetable oil industry and trade, has stressed the need for effective policy measures to be implemented effectively to ensure timely procurement of various crops at the Minimum Support Price (MSP).

The Association welcomed the significant increase in the Minimum Support Price (MSP) for six major Rabi season crops—wheat, barley, gram, lentils, mustard, and niger seed—by the Central Government, but urged concrete measures to ensure procurement at these MSPs.

The wholesale market prices of Kharif oilseed crops, especially soybean and groundnut, have fallen well below the Minimum Support Price (MSP). In the absence of government procurement, farmers are forced to sell their produce at throwaway prices.

In such a situation, higher MSPs are meaningless for these farmers, as they are unable to reap the benefits. Regularly increasing the minimum support price (MSP) is a good decision by the government, but it should also ensure that farmers benefit from it. Small farmers typically try to sell their produce quickly because they lack the capacity to store stocks for long periods.

The market price of mustard is already profitable for farmers, while the government has significantly increased its MSP. Consequently, farmers' enthusiasm and interest in cultivating this most important oilseed crop of the Rabi season is expected to increase further.

The government should be prepared to begin procurement of the new mustard crop as early as next year. Concrete steps are needed to make the MSP meaningful.