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Kharif crops sold 9–30% below MSP raising concerns over farmer realisations
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Wednesday, 14 January, 2026, 13 : 00 PM [IST]
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Our Bureau, New Delhi
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Prices realised by farmers for several kharif crops have remained 9 to 30 per cent below the Minimum Support Price (MSP) in major mandis, highlighting persistent challenges in agricultural marketing and procurement systems. The trend has renewed concerns over farmer incomes, despite record production levels in key commodities during the 2024 kharif season.
Market data indicates that crops such as soybean, tur, maize, groundnut and paddy (common varieties) have witnessed subdued prices across several producing states. In some mandis, soybean and tur have reportedly traded at discounts of over 20 per cent to MSP, while maize and groundnut prices have remained 10–15 per cent lower, largely due to excess arrivals and weak procurement operations.
Experts point out that while MSP serves as a benchmark price, effective realisation depends heavily on timely government procurement, adequate storage infrastructure and market accessibility. Delays in procurement, limited presence of procurement agencies, and quality rejections have forced many farmers to sell produce to private traders at discounted rates, especially during peak arrival periods.
For the food and beverage (F&B) industry, lower raw material prices offer short-term cost relief, particularly for processors of edible oils, pulses, cereals and animal feed. However, industry stakeholders caution that prolonged price distress can discourage farmers from investing in quality inputs, impacting crop quality and long-term supply stability.
The government has initiated procurement drives and price support measures through agencies such as NAFED and state procurement bodies, particularly for pulses and oilseeds. However, analysts note that procurement volumes remain significantly below total market arrivals, limiting their impact on overall price discovery.
Agricultural economists stress the need for stronger market reforms, including expansion of MSP-backed procurement to more crops, improved warehouse receipt financing, and greater participation of Farmer Producer Organisations (FPOs) in direct marketing. Enhancing processing and export linkages could also help absorb surplus and stabilise prices.
Unless structural issues in agri-marketing are addressed, recurring price gaps below MSP may continue to undermine farmer confidence and income security, even in years of strong production.
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