Prices of Most Commodities Fall Below MSP

23-Apr-2025 05:20 PM

New Delhi. With the Rabi harvest in full swing and continued heavy arrivals in markets, the prices of many key agricultural commodities have slipped below the Minimum Support Price (MSP).

The decline is most visible in pulses, oilseeds, and paddy, while wheat and cotton are trading slightly above MSP.

Industry experts attribute this to favorable weather, higher production during both Kharif and Rabi seasons, and large imports of pulses and edible oils.

Despite efforts by the Central Government to boost procurement through the Price Support Scheme (PSS), price recovery remains weak. Officials, however, remain optimistic that better production will help keep food inflation in check in the coming months.

The MSP for paddy is ₹2,300 per quintal, but market prices are currently 2% lower. Government procurement of Kharif paddy has increased by 5%, nearing 860 lakh tonnes.

Wheat, with an MSP of ₹2,425, is trading slightly above that level. Analysts expect prices to remain just 3-5% higher than MSP in the coming off-season months due to strong domestic output.

Cotton is also 4% above MSP, but tur and chana (gram) are below support prices, as are soybean and groundnut among oilseeds. The price of mustard varies by region. Procurement of wheat, gram, mustard, and lentil is currently underway.