Centre Approves ₹894 Crore MSP Procurement of Pulses and Oilseeds from Telangana Farmers
Union Agriculture and Farmers' Welfare Minister Shivraj Singh Chouhan approved procurement of 1,25,855 metric tonnes of crops at Minimum Support Price (MSP) from Telangana farmers for Rabi 2026 season.
The total approved procurement value is ₹894 crore, to be carried out under the Price Support Scheme (PSS) as part of the PM-AASHA framework.
Crops covered: Bengal gram (chana) — 29,860 MT; Green gram (urad) — 37,020 MT; Groundnut — 55,285 MT; Sunflower seed — 3,690 MT.
Procurement agencies: NAFED (National Agricultural Cooperative Marketing Federation of India) and NCCF (National Cooperative Consumers' Federation of India) acting as central nodal agencies.
The move is aimed at protecting Telangana farmers from distress selling when market prices fall below MSP during the peak harvesting season.
Minimum Support Price (MSP): Mechanism and Significance
Minimum Support Price is the price at which the government purchases crops from farmers, announced by the Cabinet Committee on Economic Affairs (CCEA) based on recommendations of the Commission for Agricultural Costs and Prices (CACP). MSP provides a floor price guarantee, insulating farmers from extreme market price volatility.
The ₹894 crore Telangana procurement is direct state intervention through the MSP mechanism to prevent distress selling of pulses and oilseeds — crops critical to India's food security and protein availability.
PM-AASHA: Umbrella Scheme for Price Assurance
Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) is an umbrella scheme launched in September 2018 by the Ministry of Agriculture and Farmers' Welfare to ensure remunerative prices to farmers for notified oilseeds, pulses, and copra. It replaced the earlier ad hoc intervention model with a structured three-component framework.
The Telangana approval operationalises the PSS component of PM-AASHA for Rabi 2026, with NAFED and NCCF undertaking physical procurement to support farmers of pulses and oilseeds.
Pulses and Oilseeds: Strategic Importance in Indian Agriculture
India is among the largest producers and consumers of pulses globally, yet imports significantly in deficit years. Oilseeds face a similar challenge — India imports nearly 60% of its edible oil requirements. Both crop categories are central to food security and nutritional outcomes.
Key Details
- Pulses (dal): Critical protein source, especially for vegetarian population; India produces ~25 MT/year but imports tur, urad in deficit years.
- Oilseeds: India's edible oil import bill runs to ₹1.5–2 lakh crore annually; domestic groundnut, sunflower, mustard, soybean are key.
- PM-AASHA's focus on pulses and oilseeds directly targets India's import dependence by incentivising domestic cultivation through assured price support.
- Crop diversification (away from rice-wheat monoculture in water-stressed regions) toward pulses and oilseeds is a policy goal supported by higher MSPs.
- Telangana is a significant producer of bengal gram, groundnut, and sunflower — major rabi oilseed and pulse crops in the Deccan plateau zone.
Supporting Telangana farmers at MSP for these specific crops serves dual purposes: farmer income protection and strategic push toward greater domestic production of import-dependent commodities.
- Total procurement approved: 1,25,855 MT worth ₹894 crore (Rabi 2026, Telangana)
- Crop breakdown: Bengal gram 29,860 MT; Urad 37,020 MT; Groundnut 55,285 MT; Sunflower 3,690 MT
- PM-AASHA launched: September 2018; Ministry: Agriculture and Farmers' Welfare
- Three components: PSS (physical procurement), PDPS (price deficiency payment), MIS (market intervention)
- Nodal agencies: NAFED and NCCF
- Tur, urad, masoor: 100% procurement under PSS (no ceiling)
- Other notified crops: 25% of national production ceiling under PSS
- PM-AASHA financial outgo: ₹35,000 crore for 15th Finance Commission cycle (up to 2025-26)
- MSP set based on CACP recommendation; approved by CCEA; targets 1.5× A2+FL cost