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

By FE Online9 days ago

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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.

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

By Prabhudatta Mishra

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.

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