Increase in MSP of pulses is a welcome step, will it make the market sustainable and stable?
01-Oct-2025 06:36 PM
Increase in MSP of pulses is a welcome step, will it make the market sustainable and stable?
Today, MSP for Rabi 2026-27 crops was announced, according to which MSP of chana has been increased by ₹225 and masoor by ₹300 to ₹5,875 and ₹7,000 respectively.
After the MSP increase, chana prices in major markets rose by ₹50 today, while masoor in Delhi strengthened by ₹25 per quintal. This shows that the increase in MSP has had an immediate positive impact on the market.
Last year, better prices in wheat and maize led to a significant increase in sowing. Similarly, higher MSP for pulses can encourage farmers to produce more.
In the last fiscal year (FY 2023-24), India imported 1.56 million tons of chana mainly from Australia. Due to heavy imports, Australian domestic stocks were almost exhausted, resulting in chana imports dropping to only 27,000 tons during April-July of this fiscal year (FY 2024-25), compared to 58,400 tons in the same period last year.
It is noteworthy that between December and March 2025, India imported a total of 1.3 million tons of chana at an average rate of 0.3 million tons per month.
Will market prices sustain after the MSP increase?
Chana:
Harvesting of Australia’s new 2.2 million ton huge chana crop has started, which will be ready for export to India. However, the good news is that advance vessel bookings for India are still weak.
Due to good production and imports last year, initial availability was good, but now availability is becoming weaker.
Lentil:
Last year, India had good Lentil production along with large-scale imports.
In FY 2023-24, India imported a record 1.8 million tons, which fell to 1.2 million tons in FY 2024-25.
The main reason for this decrease was sufficient availability at both domestic and import levels.
In the current fiscal year (April-July), India imported 1,76,716 tons, compared to 2,81,317 tons during the same period last year.
Australia is heading for a record 1.7 million ton masoor crop this year, along with good production from Canada.
What next?
The MSP increase will certainly provide relief and encouragement to farmers, but the question remains whether it will sustain market stability.
If imports are not controlled, inflow of foreign crops may put pressure on prices.
Therefore, for long-term stability, along with MSP increase, attention must also be paid to import management and buffer policy.
MSP increase is a step in the right direction that will encourage farmers. However, market stability can only be ensured if domestic production, import policy, and demand-supply balance are maintained.