Centre okays sunflower seed procurement in Karnataka, extends purchase window for gram in Maharashtra

The Union Ministry of Agriculture and Farmers' Welfare approved the procurement of sunflower seed under the Price Support Scheme (PSS) in Karnataka for the R...

What Happened

The Union Ministry of Agriculture and Farmers' Welfare approved the procurement of sunflower seed under the Price Support Scheme (PSS) in Karnataka for the Rabi 2026 season.
Karnataka's approved procurement quantum: 9,023 metric tonnes of sunflower, with a total MSP value exceeding ₹69.66 crore.
In Maharashtra, the maximum procurement limit for gram (chickpea) under PSS has been significantly increased to 8,19,882 metric tonnes for the Rabi 2025-26 season — and the procurement period has been extended by 30 days (to May 29, 2026).
The combined package for sunflower (Karnataka) and gram (Maharashtra) is valued at approximately ₹4,886 crore.
Procurement is activated because open market prices for these crops have fallen below their Minimum Support Prices (MSP), requiring government intervention to protect farmer incomes.
NAFED (National Agricultural Cooperative Marketing Federation of India) and NCCF (National Co-operative Consumers' Federation of India) are the primary procurement agencies under PSS.

Static Topic Bridges

Price Support Scheme (PSS) — Mechanism and Coverage

The Price Support Scheme is a component of the PM-AASHA (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan) umbrella programme. Under PSS, the central government — through NAFED and NCCF — directly procures notified commodities (oilseeds, pulses, and copra) from farmers at MSP when market prices fall below the support price. The cost of procurement, including any storage and marketing losses, is borne by the Central Government.

PM-AASHA: Launched September 2018; umbrella scheme with three pillars: PSS, PDPS (Price Deficiency Payment Scheme), and PPSS (Private Procurement and Stockist Scheme)
PSS covers: Oilseeds (including sunflower, groundnut, soyabean, rapeseed/mustard), pulses (gram, tur, moong, urad, masur), and copra
FCI vs PSS: Food Corporation of India (FCI) primarily handles food grains (wheat, rice) under the central pool; PSS handles oilseeds, pulses, and copra — separate institutional channels
Procuring agencies: NAFED (primary), NCCF (secondary)
Trigger condition: Market price < MSP in a notified market area; state government request needed

Connection to this news: Both sunflower (an oilseed) and gram (a pulse) fall squarely within PSS coverage. Karnataka and Maharashtra approached the Centre requesting procurement activation, and the Agriculture Ministry sanctioned both — a textbook instance of PSS functioning as the last-resort price backstop.

CACP — How MSP is Set

The Commission for Agricultural Costs and Prices (CACP) is the body responsible for recommending MSPs. CACP takes into account cost of production (A2+FL, A2, C2 — three different cost concepts), demand-supply balance, price trends, inter-crop price parity, and effect on inflation. The Cabinet Committee on Economic Affairs (CCEA) formally approves MSP recommendations before they are notified.

CACP: Statutory body under the Department of Agriculture and Farmers' Welfare; submits Price Policy Reports for Kharif and Rabi seasons
MSP not legally binding: There is no law requiring private traders to purchase at MSP — it is a guarantee only for government procurement
Cost concepts: A2 (paid-out cost), A2+FL (paid-out cost + imputed family labour), C2 (comprehensive cost including imputed rent and capital) — C2 is the most inclusive; CACP uses A2+FL as the base for MSP recommendation
Rabi season: Sown October–November; harvested March–May; includes gram, wheat, mustard, sunflower (rabi sunflower)

Connection to this news: The Karnataka and Maharashtra procurement approvals are downstream of CACP's earlier MSP recommendation for sunflower and gram — the 2026 rabi season prices triggered PSS because open market prices fell below CACP-recommended levels. PSS makes the MSP promise operational for oilseeds and pulses.

NAFED — Role and Structure

NAFED (National Agricultural Cooperative Marketing Federation of India) is the apex cooperative body for marketing of agricultural produce in India. It is the primary agency designated by the government for PSS procurement. NAFED also implements NEEM (National Edible Oils Mission) and other commodity price stabilisation operations. It operates storage, transportation, and gradual market-disposal of procured stocks to minimise government losses.

NAFED established: 1958; headquartered in New Delhi
Ownership: Cooperative federation owned by state cooperative marketing federations and other cooperatives
PSS role: Procures at MSP from farmers/state agencies; stores in FCI/state warehouses; disposes via open market sales once prices recover
NCCF: National Co-operative Consumers' Federation — secondary PSS agency; has a stronger consumer-distribution network
Oilseed buffer stock: NAFED also maintains strategic buffer stocks of pulses and oilseeds for price stabilisation

Connection to this news: NAFED will physically procure the 9,023 MT of sunflower in Karnataka and up to 8,19,882 MT of gram in Maharashtra — deploying its on-ground procurement infrastructure at notified mandis and aggregation points.

Rabi Season and Crop Policy Significance

Rabi crops are sown in October–November and harvested from February onwards. Key rabi crops for MSP policy include: wheat (primarily FCI/state agencies), gram/chickpea (PSS), mustard/rapeseed (PSS), sunflower rabi variety (PSS), lentils/masur (PSS). The rabi season's pulse and oilseed procurement is critical for India's self-sufficiency goals — India imports significant quantities of pulses and edible oils, and domestic MSP procurement incentivises farmers to continue growing these crops.

India's pulse import dependence: ~2-4 million MT per year (primarily tur, moong, masur from Myanmar, Canada, Australia)
India's edible oil import dependence: ~15 million MT per year (palm oil from Indonesia/Malaysia is the largest component)
Gram (chickpea): India is the world's largest producer and consumer; rabi crop; Maharashtra is a key growing state
Sunflower (rabi): Karnataka is the primary rabi sunflower state in India; used for edible oil production
Maharashtra gram procurement extension: 30-day extension to May 29, 2026 — provides additional time for price-distressed farmers to access government procurement window

Connection to this news: The procurement approvals for sunflower in Karnataka and gram in Maharashtra are not merely welfare measures — they are strategic interventions to sustain domestic oilseed and pulse cultivation, supporting India's long-term goal of reducing import dependence in these critical food categories.

Key Facts & Data

Scheme: Price Support Scheme (PSS) under PM-AASHA (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan)
Karnataka — Sunflower (Rabi 2026): 9,023 metric tonnes approved for procurement; total MSP value ₹69.66 crore
Maharashtra — Gram (Rabi 2025-26): Maximum procurement limit increased to 8,19,882 metric tonnes; MSP value ₹4,816.80 crore; procurement period extended 30 days to May 29, 2026
Combined package value: ~₹4,886 crore (sunflower + gram)
Trigger: Open market prices below MSP in relevant markets
Procurement agencies: NAFED (primary) and NCCF (secondary)
MSP recommendation body: CACP (Commission for Agricultural Costs and Prices)
MSP approval body: CCEA (Cabinet Committee on Economic Affairs)
PSS covers: Oilseeds, pulses, copra — NOT food grains (wheat/rice are under FCI)
PM-AASHA pillars: PSS (direct procurement), PDPS (price deficiency payment), PPSS (private procurement & stockist scheme)
NAFED established: 1958; apex cooperative marketing federation
Sunflower: Oilseed crop; Karnataka is India's primary rabi sunflower state
Gram/chickpea: Pulse crop; India is the world's largest producer; Maharashtra is a key growing state