Centre approves procurement of 9023 tonnes of sunflower in Karnataka

The Union Government approved the procurement of 9,023 metric tonnes of sunflower under the Price Support Scheme (PSS) for the Rabi 2026 season in Karnataka....

What Happened

The Union Government approved the procurement of 9,023 metric tonnes of sunflower under the Price Support Scheme (PSS) for the Rabi 2026 season in Karnataka.
The procurement is valued at approximately ₹69.66 crore at the notified Minimum Support Price (MSP).
The decision was taken in response to a proposal from the Karnataka state government, triggered by market prices of sunflower falling below the MSP level during the peak harvest period.
PSS procurement is operationalised through Central Nodal Agencies — NAFED (National Agricultural Cooperative Marketing Federation of India) and NCCF (National Co-operative Consumers' Federation of India) — working through state-level agencies.

Static Topic Bridges

Minimum Support Price (MSP) — The Price Floor Mechanism

MSP is the minimum price declared by the Central Government at which it undertakes to purchase specified agricultural commodities from farmers, irrespective of market conditions. It functions as a price floor, preventing distress sales when market arrivals surge during harvest.

The Commission for Agricultural Costs and Prices (CACP) recommends MSPs for 24 crops each year; the Union Cabinet approves them.
The MSP formula adopted since 2018–19 is set at at least 1.5 times the comprehensive cost of production (C2 cost, which includes imputed family labour and land rental value).
Oilseeds and pulses are particularly prone to price crashes at harvest due to perishability, import competition, and concentrated seasonal arrivals — making MSP intervention critical for these crops.
Sunflower is a notified oilseed crop for which MSP is declared every year.

Connection to this news: When Karnataka's market prices fell below the declared MSP for Rabi 2026, the state triggered PSS procurement to protect growers from distress sales.

PM-AASHA and the Price Support Scheme (PSS)

PM-AASHA (Pradhan Mantri Annadata Aay SanraksHan Abhiyan) is the umbrella scheme launched in 2018 to ensure MSP realisation by farmers. It has three components: Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS), and Pilot of Private Procurement and Stockist Scheme (PPPS). PSS is the component most relevant to oilseeds.

Under PSS, physical procurement of oilseeds, pulses, and copra is undertaken when market prices fall below MSP during the harvest season.
Implemented by: Department of Agriculture and Farmers Welfare (DA&FW), with procurement conducted by NAFED and NCCF through state agencies.
The scheme is demand-driven: procurement is triggered only when state governments submit a proposal showing market prices have dipped below MSP.
Cost of procurement operations and any market losses are borne by the Central Government.

Connection to this news: The Karnataka government's proposal to procure 9,023 MT of sunflower is exactly the PSS trigger mechanism in action — state observes below-MSP prices, proposes to Centre, Centre approves, NAFED/NCCF operationalise.

Sunflower as a Strategic Oilseed

India is one of the largest edible oil importers in the world, with an import dependency of roughly 55–60% for edible oils. Domestic oilseed cultivation — sunflower, groundnut, mustard, soybean — is central to the National Mission on Edible Oils (NMEO) strategy to reduce this dependency. Karnataka is one of the primary sunflower-growing states.

India's edible oil import bill exceeds ₹1.4 lakh crore annually, making domestic oilseed promotion a food security and forex management priority.
Sunflower is grown primarily in Karnataka, Andhra Pradesh, and Telangana; Karnataka accounts for the largest share of sunflower acreage.
National Mission on Edible Oils-Oilpalm (NMEO-OP), launched in 2021, is the flagship scheme to expand oilseed cultivation, with MSP support as a demand-side incentive.

Connection to this news: Assured MSP procurement is a demand-side tool to encourage sunflower cultivation and reduce edible oil import dependence — the Rabi 2026 Karnataka activation directly serves this strategic goal.

Key Facts & Data

Quantity approved: 9,023 metric tonnes of sunflower under PSS, Rabi 2026, Karnataka.
Approximate MSP value: ₹69.66 crore.
Procurement agencies: NAFED and NCCF (Central Nodal Agencies for oilseeds and pulses under PSS).
PM-AASHA launched: September 2018 (Cabinet approval).
PSS applies to: pulses, oilseeds (including sunflower, groundnut, mustard, soybean, sesame), and copra.
MSP determination authority: Commission for Agricultural Costs and Prices (CACP) → Cabinet approval.
India's edible oil import dependency: approximately 55–60% of total consumption.
Karnataka's role: the state is India's largest sunflower producer by cultivated area.
PSS Cost-sharing: losses borne entirely by the Central Government; states bear administrative costs of procurement operations.