What Happened
- The Centre approved large-scale procurement of gram (chickpea), mustard and lentil at Minimum Support Price (MSP) under the Price Support Scheme (PSS) for the Rabi 2026 marketing season.
- Approved quantities: Gram — 7.61 lakh MT (Maharashtra), 4.13 lakh MT (Gujarat), 5.80 lakh MT (Madhya Pradesh), 5.53 lakh MT (Rajasthan); Mustard — 13.79 lakh MT (Rajasthan), 1.33 lakh MT (Gujarat); Lentil — 6.01 lakh MT (Madhya Pradesh).
- Procurement will be conducted through central nodal agencies NAFED and NCCF at MSP rates to protect farmers from distress sales during the peak harvest period.
- Under the Pulses Self-Reliance Mission, pigeon pea (arhar), black gram (urad), and lentil procurement by central agencies will continue through 2030-31 to strengthen domestic production.
- The intervention is activated when market prices fall below MSP, which typically occurs during peak harvest when supply surges and prices drop.
Static Topic Bridges
Minimum Support Price (MSP) — Mechanism and Role
The Minimum Support Price is the floor price guaranteed by the Government of India for selected agricultural commodities. MSP is not a statutory entitlement — there is no law mandating that all produce be procured at MSP — but it serves as a market stabilisation tool. The Commission for Agricultural Costs and Prices (CACP) recommends MSPs, and the Cabinet Committee on Economic Affairs (CCEA) approves them.
- MSP-recommending body: Commission for Agricultural Costs and Prices (CACP) — an attached office of the Ministry of Agriculture and Farmers' Welfare
- Approving authority: Cabinet Committee on Economic Affairs (CCEA)
- Crops covered: 23 crops — 14 Kharif crops, 7 Rabi crops, 2 others (copra and jute)
- Formula for MSP: Atleast 50% margin over A2+FL cost (all paid-out costs plus family labour) — announced as policy in Union Budget 2018-19
- Not statutory: Supreme Court has not mandated MSP as a legal right; the demand for a legal guarantee on MSP was a key demand of the 2020-21 farm protests
Connection to this news: PSS procurement directly implements the MSP mechanism — when market prices of pulses and oilseeds fall below MSP at harvest time, the government steps in to purchase at MSP, preventing distress sales.
PM-AASHA and the Price Support Scheme (PSS)
PM-AASHA (Pradhan Mantri Annadata Aay SanraksHan Abhiyan) is the umbrella scheme for MSP-based market intervention in pulses, oilseeds, and copra. It was launched in September 2018 and has three components: Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS), and Market Intervention Scheme (MIS).
- PSS (Price Support Scheme): Government buys entire offered quantity at MSP through central nodal agencies (NAFED, NCCF); procurement losses borne by the Centre; state must waive mandi tax for PSS procurement
- PDPS (Price Deficiency Payment Scheme): Instead of physical procurement, government pays farmers the difference between MSP and market price directly to their bank accounts; used for oilseeds in select states
- MIS (Market Intervention Scheme): For perishable horticultural commodities not covered under MSP; activated on specific state government request
- Central nodal agencies: NAFED (National Agricultural Cooperative Marketing Federation of India) and NCCF (National Cooperative Export Limited) — both cooperative bodies
- Cabinet approval (September 2024): Continuation of PM-AASHA confirmed with all three components
Connection to this news: The Rabi 2026 gram, mustard and lentil procurement is the PSS component of PM-AASHA in action — central government intervention to prevent market prices from crashing below MSP after the Rabi harvest.
Pulses Self-Reliance Mission — India's Import Dependence
India is the world's largest producer and consumer of pulses, yet remains structurally import-dependent for specific pulses — particularly lentil, pigeon pea (arhar), and black gram (urad). The Pulses Self-Reliance Mission (announced in Union Budget 2025-26) aims to eliminate this dependence by 2030-31.
- India's pulse production: ~24-25 million tonnes per annum (world's largest producer)
- Import dependence: India imports 2-4 million tonnes of pulses annually (mainly lentil from Canada/Australia, arhar from Myanmar/Tanzania)
- National Pulses Mission (NPM): Gets Cabinet nod with Rs 11,440 crore allocation for 5-year period; focuses on high-yielding varieties, seed replacement, and irrigation
- Self-Reliance Mission procurement commitment: Entire quantity of arhar, urad and masoor (lentil) offered by pre-registered farmers procured by central agencies until 2030-31
- Strategic rationale: High import bills (lentil imports alone cost Rs 4,000-8,000 crore/year); price volatility affecting consumers and farmers simultaneously
Connection to this news: Guaranteed MSP procurement through PSS reduces the income risk for farmers growing pulses, incentivising the expansion of pulse cultivation needed to achieve self-reliance by 2030-31.
Key Facts & Data
- Gram approved for procurement (Rabi 2026): ~22.87 lakh MT across 4 states
- Mustard approved: ~15.12 lakh MT (Rajasthan + Gujarat)
- Lentil (masoor) approved: ~6.01 lakh MT (Madhya Pradesh)
- Central nodal agencies: NAFED and NCCF
- Pulses Self-Reliance Mission guarantee: Until 2030-31 for arhar, urad, masoor
- PM-AASHA launch year: September 2018
- PM-AASHA components: PSS, PDPS, MIS
- Crops under MSP: 23 (14 Kharif + 7 Rabi + 2 others)
- MSP recommending body: CACP (Commission for Agricultural Costs and Prices)
- MSP approving body: CCEA (Cabinet Committee on Economic Affairs)
- India's annual pulse imports: 2-4 million tonnes