Expanded procurement operations are expected to improve rural liquidity and reinforce confidence in institutional market support systems

In a significant policy intervention designed to reinforce farmer income security and strengthen agricultural market stability, the Union Government has approved major procurement measures covering sunflower in Karnataka and gram in Maharashtra under the Minimum Support Price (MSP) framework.

The decisions, cleared by Shivraj Singh Chouhan, Union Minister of Agriculture and Farmers Welfare, Government of India, are expected to provide cumulative MSP support exceeding Rs 4,886.46 crore, underscoring the Centre’s continued emphasis on protecting cultivators from adverse price fluctuations and distress-driven market sales.

Under the newly approved measures, the Government has sanctioned procurement of 9,023 metric tonnes of sunflower in Karnataka for the Rabi 2026 season under the Price Support Scheme (PSS). The procurement carries an estimated MSP value of more than Rs 69.66 crore and is expected to provide critical price assurance to sunflower farmers navigating volatile commodity market conditions.

The intervention comes at a time when fluctuations in open market prices have raised concerns regarding remunerative returns for oilseed growers. By enabling procurement operations at MSP, the Centre aims to ensure that cultivators receive fair compensation for their produce while mitigating the risk of distress sales during peak arrival periods.

In a parallel decision of far greater scale, the Government has approved an enhancement in the maximum procurement ceiling for gram in Maharashtra to 8,19,882 metric tonnes for the Rabi 2025–26 marketing season. The revised procurement limit carries an estimated MSP outlay exceeding Rs 4,816.80 crore, reflecting the substantial role of gram procurement in supporting pulse farmers across the state.

Further strengthening the support framework, the procurement timeline for gram has also been extended by an additional 30 days, allowing procurement operations to continue until May 29, 2026. The extension is expected to widen farmer participation in MSP operations and provide additional flexibility to producers who were previously unable to complete sales within the original procurement window.

Together, the measures are intended to create a more stable and predictable agricultural marketing environment by insulating farmers from abrupt price declines and improving confidence in institutional procurement mechanisms.

Agricultural stakeholders believe the expanded procurement support could play a crucial role in stabilising pulse and oilseed markets while ensuring improved liquidity within rural economies during the ongoing marketing season.

The decisions also reflect the Government’s broader strategy of strengthening MSP-backed interventions in key crops to safeguard farmer welfare, enhance market confidence, and support agricultural sustainability amid evolving commodity dynamics.

By combining expanded procurement ceilings with extended operational timelines, the Centre aims to reinforce its commitment to ensuring remunerative returns for farmers while sustaining momentum in domestic oilseed and pulse production.