Wholesale Prices of Most Kharif Crops Exceed MSP

New Delhi. Due to the prospect of reduced production caused by adverse weather and natural disasters, combined with strong festive demand, the wholesale market prices for most Kharif crops are currently higher than the Minimum Support Price (MSP) set by the central government. According to trade analysts, while the price increase for some commodities—such as groundnuts—has been modest, the prices of rice and maize are rising sharply. The acreage for paddy and maize had declined during the Kharif season.

Furthermore, the prices of the three major Rabi crops—wheat, chickpea (gram), and mustard—are also above their respective MSPs. In fact, the price of mustard has remained above the MSP for an extended period.

A leading analyst notes a tendency to withhold stock within the premises of Agricultural Produce Market Committees (APMCs), or wholesale markets (mandis).

Anticipating a drop in production due to weather-related factors, large-scale producers are selling their produce slowly, whereas the industrial and trade sectors are keen to build up large inventories through rapid procurement.

Although the festive demand for items like pulses (and pulse-based products like *besan*), edible oils, and sugar has subsided, and the sowing of Rabi crops is gaining momentum, the market is expected to remain firm and buoyant.

Higher market prices are enabling farmers to earn a good income; however, the lack of an expected rise in the prices of crops such as *moong* (green gram), *bajra* (pearl millet), and groundnuts has kept the earnings of farmers growing these specific crops somewhat limited.