Except for pulses, mandi prices of most agri food items above new minimum support prices

Mandi prices of several agricultural commodities for which the government has just announced a 5-9% increase in minimum support prices (MSPs) for the 2022-23 season are currently ruling above the MSP. Only the prices of pulses have been subdued, ruling below the benchmark price.

Mandi prices of oilseeds, especially soyabean, whose MSP was hiked 9% to Rs 4,300 a quintal for the next crop season is currently ruling 50% above the MSP at Rs 6,500 a quintal in Indore — a trade hub for oilseeds.

According to the Soyabean Processors Association of India, at the start of the 2022-23 season commencing on October 1, the soyabean prices are expected to be around Rs 5,500 to Rs 6,000 a quintal. The robust domestic demand for edible oil and soyebean meal, used as poultry feed has pushed up prices above MSP.

The market prices of groundnut oil at present are ruling around Rs 6,090 a quintal in Gujarat which is around 4% above the MSP of Rs 5,850 a quintal for the coming season.

Currently, India produces about 45% of domestic edible oil consumption. Soybean and groundnut have a share of 24% and 7% respectively in domestic production. India imports about 55-56% of its total domestic requirement of edible oil, while 15% of pulses consumption is met through imports.

In the case of rice, mandi prices are ruling around 4% above prices derived from the MSP of paddy announced for the Kharif 2022-23 season.

While benchmark prices for tur, moong and urad has been increased by 4.8%, 6.6% and 4.8% to Rs 6,600, Rs 7,755 and Rs 6,600 a quintal respectively, against last year while current mandi prices for tur and moong are 4.5% and 9% below MSP. Traders say that ample imports, especially in the case of tur, have ensured adequate domestic availability while in the case of moong there has been sluggishness in demand which has pulled down the prices below MSP. Mandi prices of urad are ruling around MSP.

Leave a Reply

Your email address will not be published.