Subdued Prices for Rabi Commodities

11-Jul-2026 11:47 AM

Kharif crops are facing uncertainty due to the looming threats of El Niño, a weak monsoon, and shortages of fertilizers and seeds, raising concerns about the production of key commodities. Meanwhile, market prices for Rabi commodities are trading 3% to 8% below the Minimum Support Price (MSP). Maize prices, in particular, could fall as much as 24% below the MSP.

Prices for three major Rabi crops—gram (chana), lentil (masoor), and barley—are currently below the MSP. However, mustard prices are trading significantly higher, which is expected to boost farmer interest and enthusiasm for cultivating this crop during the Rabi season. Wholesale market prices for wheat are hovering close to the MSP.

From the farmers' perspective, maize has shown the weakest performance, while wheat and lentil prices remain relatively normal. The MSP for mustard is set at ₹6,200 per quintal; initially, the average wholesale market price was 8% higher at ₹6,674 per quintal.

This figure represented the average for the April–June quarter, but prices have since surged to ₹7,227 per quintal—17% above the MSP. Data analysis up to July 8 reveals that, with the exception of wheat, prices for other Rabi crops have risen above the average levels seen in the previous quarter, providing relief to farmers.

The April–June quarter typically sees peak harvesting and high market arrivals for Rabi crops, which exerts some downward pressure on prices. Now, the off-season for supply is beginning, while demand is expected to remain robust.

The upcoming festive season is likely to drive up consumption and prices across various regions. Gram consumption, in particular, often spikes during the festive season, which is expected to have a positive impact on the sowing of Rabi crops.