AreaIndia
Commodity GroupOilseeds, oils and meals
CommodityGrains, oilseeds
Date01/07/2019
Policy CategoryProduction
Policy InstrumentProduction support
DescriptionSignificantly raised the minimum support prices for 2019/20 Kharif (summer) oilseed crops in an effort to incentivize domestic production and thus curb the countrys vegetable oil imports, and informed that specialized agencies designated by Central Government will continue to undertake procurement of oilseeds from small and marginal farmers.
NotesIn July, the Indian Government significantly raised the minimum support prices (MSPs) for 2019/20 Kharif (summer) oilseed crops, in an effort to incentivize domestic production and thus curb the countrys vegetable oil imports. The new per-tonne support prices, including crop-specific bonuses, and the corresponding year-on-year increases (in percent) are as follows: soybeans INR 37 100 (USD 523), 9.1 percent; groundnuts INR 50 900 (USD 718), 4.1 percent; sunflowerseed INR 56 500 (USD 797), 4.9 percent; sesameseed INR 64 850 (USD 915), 3.8 percent; and nigerseed INR 59 400 (USD 838), 1 percent. While also the MSPs for pulses saw substantial increases, the support price for rice the main Kharif crop has been raised by only 3.7 percent. Reportedly, specialized agencies designated by the Central Government will continue to undertake procurement of oilseeds from small and marginal farmers. Furthermore, under the Governments income support programme PM-KISAN, all small and marginal farmers will be entitled to receive an annual sum of INR 6 000 (USD 85).
