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LATEST NEWS UPDATES | Mandi prices rule below their minimum support prices as rabi arrivals peak

Mandi prices rule below their minimum support prices as rabi arrivals peak

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published Published on Apr 5, 2021   modified Modified on Apr 7, 2021

-Financial Express

While wheat prices may firm up once the official procurement begins in all the producing states, the government will have to implement a robust procurement system for other crops to support the prices fetched by farmers.

Mandi prices of most rabi crops ruled below their minimum support prices (MSPs) during the last month, even as more than half of the winter crop has been harvested (see chart). While wheat prices may firm up once the official procurement begins in all the producing states, the government will have to implement a robust procurement system for other crops to support the prices fetched by farmers. Farm-gate prices normally tend to come down when arrivals gain momentum.

Since the new farm laws are stayed by the Supreme Court, purchases by private players have been hit too.

According to an FE analysis of mandi prices across the country, only mustard and masur were sold above their MSPs at 9% and 2%, respectively, during March. The weighted average mandi prices of mustard and masur crops were 10% and 1%, respectively, above MSPs in Rajasthan and Madhya Pradesh, the two largest producers.

Wheat prices in Madhya Pradesh, which has seen the highest arrivals among all states, ruled at Rs 1,824/quintal (7.6% below MSP) on March 31, while the rate was around Rs 1,660/quintal in Uttar Pradesh, the largest producer of the crop. Similarly, chana prices were Rs 4,695/quintal (8% below MSP) in Madhya Pradesh and Rs 4,702/quintal in Maharashtra. Barley prices were Rs 1,362/quintal (15% below MSP) in Rajasthan and Rs 1,302/quintal in Madhya Pradesh.

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Financial Express, 5 April, 2021, https://www.financialexpress.com/economy/mandi-prices-rule-below-their-minimum-support-prices-as-rabi-arrivals-peak/2226808/?fbclid=IwAR0MvFQJeXJuA6E2JgGqD_Ovwt1z_nuV-fynuqldW0fIg3iyJUqKYW2_xMg


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