GOVERNMENT
OF INDIA
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GOVERNMENT
OF INDIA
The prices of agricultural produce are determined by supply and demand conditions in the market on a day-to-day basis. Wholesale prices of agricultural produce tend to fall immediately after harvest due to increase in market arrival of new crops. Government’s price policy is to ensure remunerative prices to farmers by offering to procure their produce at minimum support price (MSP). However, farmers are free to sell their produce to the Government procurement agencies at MSP or in the open market whichever is advantageous to them.
There were some kharif crops namely Ragi, Arhar (Tur), Moong, Urad, Cotton (Medium Staple), Sunflower Seed, Soyabean (Yellow) and Niger Seed whose wholesale price in Oct-2019 were observed below the MSP for 2019. The wholesale price of Ragi, Arhar (Tur), Moong, Urad, Cotton (Medium Staple), Sunflower Seed, Soyabean (Yellow) and Niger Seed was Rs. 2,810, 5,570, 6,466, 5,624, 5,066, 3,486, 3,594 and 4,840 per quintal respectively in October 2019. The wholesale price of Ragi, Arhar (Tur), Moong, Urad, Cotton (Medium Staple), Sunflower Seed, Soyabean (Yellow) and Niger Seed was declined by -10.8%, -4%, -8.3%, -1.3%, -3.6%, -38.3%, -3.1% and -18.5% respectively in Oct-2019 against MSP for 2019.
There were some kharif crops namely Paddy (Common), Jowar (Hybrid), Bajra, Maize, Groundnut in Shell and Sesamum whose wholesale price in Oct-2019 were seen above the MSP for 2019. The wholesale price of Paddy (Common), Jowar (Hybrid), Bajra, Maize, Groundnut in Shell and Sesamum was Rs. 1,829, 2,723, 2,024, 2,003, 5,478 and 10,081 per quintal respectively. The wholesale price of Paddy (Common), Jowar (Hybrid), Bajra, Maize, Groundnut in Shell and Sesamum was increased by 0.8%, 6.8%, 1.2%, 13.8%, 7.6% and 55.5% respectively in Oct-2019 versus MSP for 2019.
Note: Source: RAJYA SABHA SESSION – 250 UNSTARRED QUESTION NO. 1284; Data figures are in Rs. Per Quintal; Source: Directorate of Economics & Statistics; #: MSP for Rabi Crops for 2019-20 is announced for Rabi Marketing Season 2020-21.
Resource Title: Minimum Support Price (MSP) and Wholesale Prices of Major Agricultural Commodities during 2019 (From: Ministry of Agriculture and Farmers Welfare)