The Union Ministry of Agriculture and Farmers Welfare has approved a procurement plan worth ₹5,547.99 crore to buy pulses and oilseeds directly from farmers at government-set minimum support prices (MSP) during the Kharif marketing season of 2026-27. The decision, announced by Union Minister Shivraj Singh Chouhan, covers three states: Uttar Pradesh, Karnataka and Telangana. The scheme aims to shield farmers from falling market prices and guarantee them steady income from their harvest.
Under the Price Support Scheme (PSS), the government will purchase a total of 7.06 lakh metric tonnes of crops from farmers across these states at fixed MSP rates. The programme protects cultivators of pulses like tur and moong, and oilseeds like soybean and sunflower from the risk of selling at depressed prices when market conditions are unfavourable.
Key facts
- Total procurement value approved: ₹5,547.99 crore
- Uttar Pradesh allocation: ₹3,992.57 crore for 4,72,250 metric tonnes of tur and moong
- Karnataka allocation: ₹1,107 crore for 1,67,163 metric tonnes of soybean, moong and sunflower
- Telangana allocation: ₹448.42 crore for 72,766 metric tonnes of soybean and moong
- Crops covered: Tur, moong, soybean and sunflower
- Marketing season: Kharif 2026-27
How the Price Support Scheme works
The Price Support Scheme is a central government programme that steps in when farm output prices fall below a threshold set by the government. Rather than allow farmers to suffer losses, the government or its designated agencies purchase the crop directly at the MSP, which is higher than the market price at that time. This ensures farmers receive at least a minimum guaranteed return regardless of market conditions.
Under this scheme, procurement centres are set up in the three states where registered farmers can bring their produce and sell it at the announced MSP. The government has committed to keeping the process transparent and ensuring payments reach farmers’ bank accounts promptly.
State-wise breakdown
Uttar Pradesh receives the largest share of the approved funds. The state will procure 4,66,000 metric tonnes of tur (pigeon pea) at a value of ₹3,937.70 crore and 6,250 metric tonnes of moong (mung bean) worth ₹54.87 crore at MSP. Tur and moong are important pulse crops grown widely in the state and consumed across India.
Karnataka will benefit from procurement of three oilseed and pulse crops. The state will supply 1,15,500 metric tonnes of soybean valued at ₹659.27 crore, 38,250 metric tonnes of moong at ₹335.83 crore, and 13,413 metric tonnes of sunflower at ₹111.90 crore. These oilseeds are crucial for domestic cooking oil production.
Telangana has been approved for procurement of 62,000 metric tonnes of soybean worth ₹353.90 crore and 10,766 metric tonnes of moong valued at ₹94.52 crore at MSP rates.
Why this matters for farmers
Farmers growing pulses and oilseeds often face price volatility in open markets. A large harvest in one year can flood the market and cause prices to crash, wiping out profits. By guaranteeing purchase at MSP, the government removes this risk and gives farmers confidence to invest in seeds, fertiliser and labour. Steady returns also encourage farmers to continue growing these crops rather than shift to alternatives, which helps India reduce its dependence on imports of pulses and edible oils.
The policy also ensures direct payment to farmers’ bank accounts, reducing middlemen and delays that commonly occur in traditional agricultural markets.
Broader policy context
Pulses and oilseeds are strategic crops for India. The country imports significant quantities annually to meet domestic food and cooking oil demand. By supporting domestic production through MSP procurement schemes, the government aims to boost self-sufficiency and reduce import bills while strengthening farmers’ incomes in these segments.