Edible Oil Industry Welcomes Hike in MSP for Oilseeds

14-May-2026 08:33 PM

Mumbai: Various organizations representing the indigenous vegetable oil industry and the trade sector have welcomed the substantial increase in the Minimum Support Price (MSP) for Kharif oilseed crops for the 2026-27 season. These organizations state that this move will provide a strong incentive for farmers to expand the sowing area and boost the production of crops such as soybean, groundnut, sunflower, niger seed, and sesame. Furthermore, it is expected to assist in reducing the country's dependence on the import of foreign edible oils.

Notably, for the 2026-27 Kharif season—compared to the 2025-26 season—the Central Government has revised the MSPs for oilseed crops as follows: Groundnut MSP has been increased by ₹254, from ₹7,263 per quintal to ₹7,517 per quintal; Soybean MSP by ₹380, from ₹5,328 to ₹5,708 per quintal; Sesame (Til) MSP by ₹500, from ₹9,846 to ₹10,346 per quintal; Niger Seed MSP by ₹515, from ₹9,537 to ₹10,052 per quintal; and Sunflower MSP by ₹622, from ₹7,721 to ₹8,343 per quintal. This increase is expected to provide significant relief to farmers.

Typically, whenever wholesale market prices drop below the Minimum Support Price, government agencies—specifically NAFED and NCCF—undertake large-scale procurement of oilseeds directly from farmers. During the 2025-26 marketing season as well, substantial quantities of soybean and groundnut were procured by the government. These two oilseeds account for the highest production volume during the Kharif season. Currently, however, their wholesale market prices are trading above the government's support price.