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Economics April 23, 2026 5 min read Daily brief · #18 of 19

Government Strengthens MSP Procurement in Chhattisgarh; Launches First-Ever Structured Pulse Procurement in Bihar under Atmanirbhar Mission

Under the PM-AASHA scheme, procurement operations for chana (chickpea) and masoor (lentil) at Minimum Support Price (MSP) have been significantly scaled up i...


What Happened

  • Under the PM-AASHA scheme, procurement operations for chana (chickpea) and masoor (lentil) at Minimum Support Price (MSP) have been significantly scaled up in Chhattisgarh, with a network of 85 Primary Agricultural Credit Societies (PACS) centres operational across seven districts including Dhamtari, Durg, Balod, Raipur, and Raigarh.
  • NCCF (National Cooperative Consumers' Federation of India) has set a target to procure 63,325 MT of chana and 5,360 MT of masoor in Chhattisgarh; as of April 22, 2026, actual procurement stood at 9,032 MT of chana (benefiting 6,129 farmers) and 7.98 MT of masoor.
  • In Bihar, NCCF has initiated the state's first-ever organised, structured procurement of masoor at MSP — a landmark step under the Atmanirbhar Pulses Mission (formally titled the Mission for Aatmanirbharta in Pulses, approved October 1, 2025).
  • Bihar's masoor procurement is backed by scientific storage through WDRA-approved warehouses operated in collaboration with the Central Warehousing Corporation (CWC); against a target of 32,000 MT, actual procurement as of April 22 stood at 100.4 MT, with operations expected to scale rapidly.
  • Farmer registration is digitised through the E-Samyukti portal in Chhattisgarh, with 16,012 farmers registered for chana and 451 for masoor procurement.

Static Topic Bridges

PM-AASHA (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan)

PM-AASHA is an umbrella price-support scheme launched in September 2018 to ensure that farmers receive remunerative prices for their produce — particularly for pulses, oilseeds, and copra — by operationalising MSP announcements through actual procurement or price deficiency compensation.

  • PM-AASHA has three operational components:
  • Price Support Scheme (PSS): Physical procurement of pulses and oilseeds by central nodal agencies (NAFED, NCCF) when market prices fall below MSP. Losses incurred by nodal agencies are borne by the Central Government.
  • Price Deficiency Payment Scheme (PDPS): Direct transfer to farmers of the difference between MSP and actual market price — no physical procurement. Applicable to oilseeds only, through registered bank accounts.
  • Private Procurement and Stockist Scheme (PPSS): Allows private sector participation in procurement up to 25% of production in a state, for selected oilseed crops.
  • Nodal agencies: NAFED (National Agricultural Cooperative Marketing Federation of India) and NCCF are the principal implementing agencies under PSS.
  • The scheme was extended through 2025–26 in a cabinet decision.

Connection to this news: Procurement in both Chhattisgarh (chana/masoor) and Bihar (masoor) is being carried out under the PSS component of PM-AASHA, with NCCF as the nodal agency.


Minimum Support Price (MSP) System

The MSP is an administered price announced by the Cabinet Committee on Economic Affairs (CCEA) on the recommendation of the Commission for Agricultural Costs and Prices (CACP) to protect farmers from market price volatility and ensure price stability.

  • MSP covers 23 mandated crops: 14 kharif crops (including paddy, jowar, bajra, tur, urad, moong, groundnut), 6 rabi crops (wheat, barley, gram/chana, masoor, mustard, safflower), and two commercial crops (jute and copra).
  • The MSP is set to cover at least a 50% margin above the cost of production (the "A2+FL" formula, where A2 = paid-out costs, FL = imputed family labour value).
  • MSP alone does not guarantee price protection unless backed by actual procurement; PM-AASHA was designed to bridge this "announcement-implementation" gap.
  • Pulses have historically seen low government procurement relative to food grains, making PM-AASHA especially critical for pulse farmers.

Connection to this news: The expanded procurement operations represent a step toward operationalising the MSP guarantee for pulse farmers — an issue central to farmer welfare debates and a recurring UPSC theme.


Mission for Aatmanirbharta in Pulses (Atmanirbhar Pulses Mission)

Approved by the Union Cabinet on October 1, 2025, and announced in the Union Budget 2025–26, this ₹11,440 crore mission aims to make India self-sufficient in pulse production by 2030–31, reducing import dependency and strengthening domestic supply chains.

  • India is the world's largest producer and consumer of pulses, yet has been structurally import-dependent — imports reached 4.65 million tonnes in 2023–24, the highest in six years, worth $3.75 billion.
  • Priority crops: tur (pigeon pea), urad (black gram), and masoor (red lentil).
  • Mission goals: Expand pulse cultivation area by 35 lakh hectares (targeting rice fallows and intercropping areas); raise average national yield from 881 kg/ha to 1,130 kg/ha (against Canada's 2,200 kg/ha benchmark).
  • The mission includes MSP-based procurement support, post-harvest warehousing investment, and farmer extension services.
  • Major import sources for pulses: Myanmar, Mozambique, Tanzania, Australia, and Canada.

Connection to this news: Bihar's first-ever structured masoor procurement is a direct implementation step under this mission, seeking to build procurement infrastructure and farmer confidence in a state that historically lacked organised pulse marketing.


NCCF and NAFED: Roles in Agricultural Procurement

NCCF (National Cooperative Consumers' Federation of India Ltd.) and NAFED (National Agricultural Cooperative Marketing Federation of India Ltd.) are the two central nodal agencies designated to implement price support procurement under PM-AASHA.

  • NAFED was established in 1958 and is the apex body for agricultural cooperative marketing; its mandate covers price stabilisation, buffer stock operations, and MSP procurement for pulses, oilseeds, and other commodities.
  • NCCF was established in 1965 and was originally focused on consumer goods distribution; it has been increasingly deployed for agricultural price support operations in recent years.
  • Both agencies operate under the Ministry of Cooperation and the Ministry of Agriculture & Farmers' Welfare respectively.
  • Under PM-AASHA's PSS, procurement losses incurred by NAFED and NCCF are reimbursed by the Central Government, insulating them from market risk.

Connection to this news: NCCF is the lead implementing agency for both the Chhattisgarh and Bihar pulse procurement drives, operating through PACS centres (Chhattisgarh) and CWC-managed warehouses (Bihar).


Key Facts & Data

  • PM-AASHA launched: September 2018; three components: PSS, PDPS, PPSS.
  • Nodal agencies under PSS: NCCF and NAFED.
  • Chhattisgarh chana procurement target: 63,325 MT; actual as of April 22, 2026: 9,032 MT (6,129 farmers).
  • Chhattisgarh masoor procurement target: 5,360 MT; actual: 7.98 MT.
  • Number of PACS procurement centres in Chhattisgarh: 85 (across Dhamtari, Durg, Balod, Balodabazar, Raipur, Raigarh, Sarangarh).
  • Farmer registration platform: E-Samyukti portal — 16,012 registered for chana; 451 for masoor.
  • Bihar masoor procurement target: 32,000 MT; actual as of April 22, 2026: 100.4 MT (first-ever structured state-level procurement).
  • Storage: WDRA-approved warehouses in collaboration with CWC.
  • Mission for Aatmanirbharta in Pulses: Approved October 1, 2025; outlay ₹11,440 crore; target period 2025–26 to 2030–31.
  • India's pulse import in 2023–24: 4.65 million tonnes (84% year-on-year increase); value: $3.75 billion.
  • India's pulse production in 2024–25: approximately 252.38 lakh tonnes (3rd Advance Estimates).
  • National yield target under the mission: 1,130 kg/ha (current: 881 kg/ha).
  • MSP covers 23 mandated crops; set at ≥50% return over A2+FL cost.
On this page
  1. What Happened
  2. Static Topic Bridges
  3. PM-AASHA (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan)
  4. Minimum Support Price (MSP) System
  5. Mission for Aatmanirbharta in Pulses (Atmanirbhar Pulses Mission)
  6. NCCF and NAFED: Roles in Agricultural Procurement
  7. Key Facts & Data
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