← Resources · February 25, 2026
Economics GS3 4 min read

Centre approves gram, mustard and lentil procurement under PSS for Rabi 2026

What happened
01

The Centre approved large-scale procurement of gram (chickpea), mustard and lentil at Minimum Support Price (MSP) under the Price Support Scheme (PSS) for the Rabi 2026 marketing season.

02

Approved quantities: Gram — 7.61 lakh MT (Maharashtra), 4.13 lakh MT (Gujarat), 5.80 lakh MT (Madhya Pradesh), 5.53 lakh MT (Rajasthan); Mustard — 13.79 lakh MT (Rajasthan), 1.33 lakh MT (Gujarat); Lentil — 6.01 lakh MT (Madhya Pradesh).

03

Procurement will be conducted through central nodal agencies NAFED and NCCF at MSP rates to protect farmers from distress sales during the peak harvest period.

04

Under the Pulses Self-Reliance Mission, pigeon pea (arhar), black gram (urad), and lentil procurement by central agencies will continue through 2030-31 to strengthen domestic production.

05

The intervention is activated when market prices fall below MSP, which typically occurs during peak harvest when supply surges and prices drop.

Static topic 1 of 3 · Economics

Minimum Support Price (MSP) — Mechanism and Role

The Minimum Support Price is the floor price guaranteed by the Government of India for selected agricultural commodities. MSP is not a statutory entitlement — there is no law mandating that all produce be procured at MSP — but it serves as a market stabilisation tool. The Commission for Agricultural Costs and Prices (CACP) recommends MSPs, and the Cabinet Committee on Economic Affairs (CCEA) approves them.

Key Details

  • MSP-recommending body: Commission for Agricultural Costs and Prices (CACP) — an attached office of the Ministry of Agriculture and Farmers' Welfare
  • Approving authority: Cabinet Committee on Economic Affairs (CCEA)
  • Crops covered: 23 crops — 14 Kharif crops, 7 Rabi crops, 2 others (copra and jute)
  • Formula for MSP: Atleast 50% margin over A2+FL cost (all paid-out costs plus family labour) — announced as policy in Union Budget 2018-19
  • Not statutory: Supreme Court has not mandated MSP as a legal right; the demand for a legal guarantee on MSP was a key demand of the 2020-21 farm protests
Connection to this news

PSS procurement directly implements the MSP mechanism — when market prices of pulses and oilseeds fall below MSP at harvest time, the government steps in to purchase at MSP, preventing distress sales.

Static topic 2 of 3 · Economics

PM-AASHA and the Price Support Scheme (PSS)

PM-AASHA (Pradhan Mantri Annadata Aay SanraksHan Abhiyan) is the umbrella scheme for MSP-based market intervention in pulses, oilseeds, and copra. It was launched in September 2018 and has three components: Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS), and Market Intervention Scheme (MIS).

Key Details

  • PSS (Price Support Scheme): Government buys entire offered quantity at MSP through central nodal agencies (NAFED, NCCF); procurement losses borne by the Centre; state must waive mandi tax for PSS procurement
  • PDPS (Price Deficiency Payment Scheme): Instead of physical procurement, government pays farmers the difference between MSP and market price directly to their bank accounts; used for oilseeds in select states
  • MIS (Market Intervention Scheme): For perishable horticultural commodities not covered under MSP; activated on specific state government request
  • Central nodal agencies: NAFED (National Agricultural Cooperative Marketing Federation of India) and NCCF (National Cooperative Export Limited) — both cooperative bodies
  • Cabinet approval (September 2024): Continuation of PM-AASHA confirmed with all three components
Connection to this news

The Rabi 2026 gram, mustard and lentil procurement is the PSS component of PM-AASHA in action — central government intervention to prevent market prices from crashing below MSP after the Rabi harvest.

Static topic 3 of 3 · Economics

Pulses Self-Reliance Mission — India's Import Dependence

India is the world's largest producer and consumer of pulses, yet remains structurally import-dependent for specific pulses — particularly lentil, pigeon pea (arhar), and black gram (urad). The Pulses Self-Reliance Mission (announced in Union Budget 2025-26) aims to eliminate this dependence by 2030-31.

Key Details

  • India's pulse production: ~24-25 million tonnes per annum (world's largest producer)
  • Import dependence: India imports 2-4 million tonnes of pulses annually (mainly lentil from Canada/Australia, arhar from Myanmar/Tanzania)
  • National Pulses Mission (NPM): Gets Cabinet nod with Rs 11,440 crore allocation for 5-year period; focuses on high-yielding varieties, seed replacement, and irrigation
  • Self-Reliance Mission procurement commitment: Entire quantity of arhar, urad and masoor (lentil) offered by pre-registered farmers procured by central agencies until 2030-31
  • Strategic rationale: High import bills (lentil imports alone cost Rs 4,000-8,000 crore/year); price volatility affecting consumers and farmers simultaneously
Connection to this news

Guaranteed MSP procurement through PSS reduces the income risk for farmers growing pulses, incentivising the expansion of pulse cultivation needed to achieve self-reliance by 2030-31.

Key facts & data
  • Gram approved for procurement (Rabi 2026): ~22.87 lakh MT across 4 states
  • Mustard approved: ~15.12 lakh MT (Rajasthan + Gujarat)
  • Lentil (masoor) approved: ~6.01 lakh MT (Madhya Pradesh)
  • Central nodal agencies: NAFED and NCCF
  • Pulses Self-Reliance Mission guarantee: Until 2030-31 for arhar, urad, masoor
  • PM-AASHA launch year: September 2018
  • PM-AASHA components: PSS, PDPS, MIS
  • Crops under MSP: 23 (14 Kharif + 7 Rabi + 2 others)
  • MSP recommending body: CACP (Commission for Agricultural Costs and Prices)
  • MSP approving body: CCEA (Cabinet Committee on Economic Affairs)
  • India's annual pulse imports: 2-4 million tonnes
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