What Happened
- The Union Agriculture Minister approved the Price Support Scheme (PSS) proposal for safflower procurement for the Rabi 2025-26 season in select states
- The approved quantity for safflower procurement stands at 6,923 tonnes at the Minimum Support Price (MSP)
- The Centre also approved procurement of pulses and oilseeds in Uttar Pradesh, Haryana, and Karnataka, forming part of the broader PM-AASHA umbrella scheme
- Procurement will be conducted by Central Nodal Agencies — NAFED and NCCF — directly from pre-registered farmers, eliminating middlemen
- The government has allocated a guarantee of Rs 45,000 crore for MSP-based procurement of pulses, oilseeds, and copra
Static Topic Bridges
PM-AASHA Scheme and Its Three Components
Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) is an umbrella scheme launched in September 2018 to provide price assurance to farmers for oilseeds, pulses, and copra. The scheme was designed to ensure that farmers receive at least the MSP for their produce and reduce dependence on middlemen. Cabinet approved continuation of the scheme in September 2024.
- Price Support Scheme (PSS): Physical procurement of notified pulses, oilseeds, and copra at MSP by Central Nodal Agencies (NAFED, NCCF) through state agencies, activated on request by state governments that agree to waive mandi tax
- Price Deficiency Payment Scheme (PDPS): Direct benefit transfer of the difference between MSP and the actual selling price, without physical procurement — applicable to oilseeds only
- Market Intervention Scheme (MIS): For perishable horticultural commodities like tomato, onion, and potato that are not covered under MSP
- Procurement ceiling: 25% of national production for most crops; 100% procurement for tur, urad, and masur in 2024-25 to manage supply-side shortages
Connection to this news: The Centre's approval for safflower and other crop procurement in UP, Haryana, and Karnataka directly activates the PSS component of PM-AASHA for the Rabi 2025-26 season, ensuring farmers receive MSP without being forced to sell at distress prices.
Minimum Support Price (MSP) — Policy and Significance
MSP is the floor price announced by the government at which it purchases crops from farmers if market prices fall below a certain level. The government fixes MSP for 24 crops based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). Since 2018, MSP has been fixed at a minimum of 1.5 times the cost of production (A2+FL cost), aligned with the Swaminathan Commission recommendation.
- CACP evaluates three cost concepts: A2 (actual paid-out costs), A2+FL (including imputed value of family labour), and C2 (comprehensive cost including imputed rent and capital)
- MSP acts as a price signal, influencing farmer cropping decisions and contributing to crop diversification
- MSP alone is not a guarantee of procurement; actual procurement depends on state request and commodity-specific approval
- Parliamentary panel recently recommended 100% MSP procurement for oilseeds and pulses — highlighting the gap between announced MSP and actual procurement
Connection to this news: The PSS approval translates the announced MSP into a concrete procurement commitment for safflower in specific states, bridging the gap between policy announcement and actual farmer benefit.
Rabi and Kharif Cropping Seasons in India
India follows two main cropping seasons. Kharif crops (June-November) include paddy, maize, soybean, and cotton — sown with the onset of monsoon. Rabi crops (October-March) include wheat, mustard, barley, gram, and safflower — sown in winter using residual soil moisture or irrigation.
- Safflower is an oilseed rabi crop grown mainly in Karnataka, Maharashtra, and Andhra Pradesh; India is among the top producers globally
- Haryana and UP are major rabi crop producers, especially for wheat, mustard, and gram
- Crop-specific procurement approvals are given separately for kharif and rabi seasons, with state-level modalities determining actual execution
Connection to this news: The rabi 2025-26 approval specifically covers safflower — a niche oilseed crop — indicating targeted government intervention for crops that are commercially vulnerable to price crashes at harvest time.
Key Facts & Data
- Approved safflower procurement quantity: 6,923 tonnes at MSP for rabi 2025-26
- PM-AASHA launched: September 2018; continued with enhanced scope until 2025-26
- Central Nodal Agencies: NAFED (National Agricultural Cooperative Marketing Federation) and NCCF
- Government guarantee for procurement: Rs 45,000 crore
- PSS procurement ceiling: 25% of national production (from 2024-25), no ceiling for tur, urad, masur in 2024-25
- MSP is fixed for 24 crops; CACP recommends MSP based on A2+FL and C2 cost concepts
- States must waive mandi tax as a precondition for PSS activation