Lack of Boom in Oilseeds Market Despite Record Government Procurement

24-Apr-2025 11:39 AM

New Delhi. Despite record government procurement of oilseeds during the 2024-25 Kharif and Rabi seasons, there has been no significant rise in market prices.

The Central Government has approved procurement of over 60 lakh tonnes of oilseeds—mainly soybean, groundnut, and mustard—at the Minimum Support Price (MSP) under the Price Support Scheme (PSS). Additionally, 50 lakh tonnes of pulses are also being procured, including tuvar, gram, urad, lentil, and moong.

During the Kharif season, the government purchased about 35 lakh tonnes of soybean and groundnut—setting a new record.

For the current Rabi season, 28.60 lakh tonnes of mustard have been approved for procurement, of which 3.40 lakh tonnes have been procured so far.

Despite these efforts, wholesale market prices, especially for soybean, remain below the MSP. Officials from NAFED and NCCF, the two key procurement agencies, are actively involved in the process.

Meanwhile, NAFED is preparing to sell soybean from its stock, while sales of groundnut and last season’s mustard stock have already begun.

Industry observers attribute the lack of price movement to the large-scale import of edible oils, which has ensured ample domestic supply and reduced demand for domestic oilseeds.

While mustard production may decline this year due to a fall in sowing area, the grain quality remains high. However, farmers are reluctant to sell at low prices, and millers are hesitant to buy at high rates, as both oil and cake prices remain subdued.