Mandi Prices Surge Above MSP for Mustard and Gram

Current mandi prices for mustard and gram are significantly higher than the government’s minimum support price (MSP) for the 2027-28 marketing season. This surge is driven by rising global edible oil and pulse prices, raising concerns about food inflation. In Bharatpur, Rajasthan, mustard is being sold at over Rs 8000 per quintal, 21% above the MSP of Rs 6613 per quintal. Farmers are benefiting from higher market prices ahead of the upcoming sowing season.

Global price increases for imported edible oils, including palm, soybean, and sunflower, have boosted domestic demand for oilseeds, as India imports about 58% of its annual oil consumption. Gram prices, which make up 50% of India’s pulse production, are trading between Rs 7000 and Rs 7200 per quintal, 17% higher than the MSP of Rs 5958 per quintal. Traders have called for the release of 2 million tonnes of chana from government buffer stocks to stabilize prices.

The MSP for wheat, another major rabi crop, has seen only a modest increase of Rs 25 per quintal, or less than 1%, to Rs 2610 per quintal for the 2026-27 season. This modest hike is attributed to surplus grain stocks and the government’s focus on boosting oilseeds and pulses production. Wheat prices in Kota, Rajasthan, range from Rs 2550 to Rs 2800 per quintal, with expectations that prices will soften as the government plans to sell surplus wheat stocks.

The government has set a reserve price of Rs 2600 per quintal for Fair and Average Quality wheat and Rs 2585 per quintal for under-Relaxed Specifications for the current fiscal year. The Food Corporation of India (FCI) currently holds over 46.76 million tonnes of wheat, far exceeding the buffer and strategic reserve norm of 20.52 million tonnes for October.