Slow Pace in Government Procurement of Rabi Pulses and Oilseeds

12-Apr-2025 09:52 AM

Slow Pace in Government Procurement of Rabi Pulses and Oilseeds
★ Due to the narrow gap between MSP (Minimum Support Price) and mandi prices, farmers are preferring to sell their produce in the open market instead of to government agencies.
★ Under the Price Support Scheme (PSS), NAFED and NCCF have procured only 3.1 lakh tons of mustard so far, against the target of 28.2 lakh tons. Last year (2023-24), government agencies had procured 12 lakh tons of mustard from four major states. The industry has estimated mustard production in 2024-25 at 111.3 lakh tons, while the official estimate stands at 128.7 lakh tons.
★ Only 16,670 tons of chana (desi chickpeas) have been procured so far, which is far below the target of 27.9 lakh tons. Procurement was also weak in the previous season.
★ For example, the large quantity of mustard sold last year affected the oilseed markets significantly. Continuous availability, lower demand for oilcake, and reduced crushing volumes kept prices under prolonged pressure, and markets are still struggling to recover.
★ On the other hand, limited government stock of chana resulted in lower sales, which helped keep prices stable over a longer period.
★ If government procurement of these two crops continues to remain low, market prices in the future will likely be more aligned with actual demand and supply dynamics.