Centre Approves Large-Scale Procurement of Pulses and Oilseeds Under PSS in Four States; Farmers to Benefit: Shri Shivraj Singh Chouhan

The Union Agriculture Ministry approved large-scale procurement of pulses and oilseeds under the Price Support Scheme (PSS) — a component of the PM-AASHA sch...

What Happened

The Union Agriculture Ministry approved large-scale procurement of pulses and oilseeds under the Price Support Scheme (PSS) — a component of the PM-AASHA scheme — for four states: Uttar Pradesh, Gujarat, Tamil Nadu, and Haryana.
Procurement at Minimum Support Price (MSP) is being triggered because prevailing market prices in these states have fallen below the declared MSP for the Summer 2026 season.
NAFED (National Agricultural Cooperative Marketing Federation of India) and NCCF (National Cooperative Consumer Federation) will be the implementing nodal agencies.

Static Topic Bridges

Minimum Support Price (MSP) — Mechanism and Legal Status

The MSP is the floor price declared by the Government of India at which central agencies procure designated agricultural commodities from farmers to protect them from distress sales when market prices fall.

Recommendation body: Commission for Agricultural Costs and Prices (CACP), under the Ministry of Agriculture — recommends MSP; Cabinet Committee on Economic Affairs (CCEA) formally approves.
Coverage: CACP recommends MSP for 23 mandated crops (14 Kharif + 6 Rabi + 2 commercial crops + sugarcane through a separate Fair and Remunerative Price mechanism).
Pulses and oilseeds under MSP: Moong, urad, tur (pigeon pea), gram (chana), lentil (masur); groundnut, rapeseed-mustard, soyabean, sesamum, sunflower, safflower, nigerseed.
Legal status: MSP has no statutory backing under any central law; it is an administrative declaration. This has been a persistent policy debate.

Connection to this news: Procurement was triggered specifically because market prices in these four states fell below declared MSP, activating the PSS mechanism to protect farmers from distress.

PM-AASHA and the Price Support Scheme

PM-AASHA (Pradhan Mantri Annadata Aay SanraksHan Abhiyan) is an umbrella scheme launched in 2018 to ensure remunerative prices to farmers. It has three components:

Component 1 — Price Support Scheme (PSS): Physical procurement of pulses and oilseeds at MSP by central nodal agencies (NAFED, NCCF) when market prices fall below MSP. The central government bears the full procurement cost.
Component 2 — Price Deficiency Payment Scheme (PDPS): Instead of physical procurement, the difference between MSP and the market price is paid directly to farmers' bank accounts — applicable for oilseeds (except groundnut); no physical movement of produce needed.
Component 3 — Private Procurement and Stockist Scheme (PPSS): Pilot scheme where private agencies procure at MSP on payment of a service charge by the state government.

Connection to this news: The current approval activates Component 1 (PSS) — physical procurement of moong, urad, and groundnut in four states.

NAFED and NCCF — Nodal Procurement Agencies

NAFED (National Agricultural Cooperative Marketing Federation of India): Established 1958; a multi-state cooperative under the Multi-State Cooperative Societies Act, 2002. The apex cooperative marketing organisation for agricultural produce in India.
Role: PSS procurement, price stabilisation, buffer stock management for pulses.
Key scheme: Also manages procurement under the National Food Security Act and PMGKAY for certain commodities.
NCCF (National Cooperative Consumer Federation of India): Established 1965; focuses on consumer goods including food grains. Has expanded role in PSS procurement in recent years, including as a parallel agency alongside NAFED.
FCI (Food Corporation of India): Separate agency handling wheat and rice procurement under NFSA — not involved in pulse/oilseed PSS procurement.

Connection to this news: NAFED and NCCF are jointly implementing procurement in all four states for Summer 2026.

What Is Being Procured — Summer 2026 Approvals

Uttar Pradesh (largest approval):
Moong: 48,298 MT at declared MSP
Urad (black gram): 97,970 MT at declared MSP
Groundnut: 41,718 MT at declared MSP
Total value: Over ₹1,490 crore
Gujarat:
Moong: 18,250 MT — value over ₹160 crore
Haryana:
Moong: 2,115 MT — value over ₹18 crore
Tamil Nadu: Approved for Summer 2026; specific crop-wise quantities part of the same batch approval.
Season: Summer (Zaid) 2026 — the third agricultural season, between Rabi and Kharif, typically for short-duration crops like moong and watermelon in irrigated areas.

Connection to this news: The approval activates PSS specifically for the Summer 2026 harvest across these states.

Food Security and Self-Sufficiency Policy Context

India is the world's largest producer and consumer of pulses, yet has historically faced supply deficits leading to price spikes, especially for tur (arhar) and chana.
The National Self-Reliance in Pulses Mission (under the National Food Security Mission) aims to raise domestic pulse production and reduce import dependence.
PSS procurement acts as both a price stabiliser and a strategic buffer — procured stocks are released into the market through agencies like NAFED and government outlets when retail prices spike.
Import duty on pulses: The government uses import duty adjustments (including zero-duty windows) as a complementary tool to control domestic prices — the flip side of MSP's price-floor role.

Connection to this news: The large-scale procurement in UP, Gujarat, Tamil Nadu, and Haryana in Summer 2026 demonstrates the price stabilisation function of PSS — protecting farmers when prices fall, and building buffer stocks that can be deployed when consumer prices spike.

Key Facts & Data

PM-AASHA launched: 2018 (Cabinet approval)
Price Support Scheme (PSS): Component 1 of PM-AASHA — physical procurement by NAFED/NCCF at MSP
Nodal agencies: NAFED (est. 1958) and NCCF (est. 1965)
MSP recommending body: Commission for Agricultural Costs and Prices (CACP)
Approving body: Cabinet Committee on Economic Affairs (CCEA)
Crops covered by PSS: Pulses (moong, urad, tur, gram, lentil) and oilseeds (groundnut, mustard, soyabean, etc.)
Summer 2026 states approved: Uttar Pradesh, Gujarat, Tamil Nadu, Haryana
UP total approval: ~₹1,490 crore for moong (48,298 MT), urad (97,970 MT), groundnut (41,718 MT)
Gujarat approval: 18,250 MT moong (~₹160 crore)
Haryana approval: 2,115 MT moong (~₹18 crore)
MSP legal status: Non-statutory (administrative declaration) — no legislative mandate under current law
Seventh Schedule context: Agriculture is State List (Entry 14, List II); food procurement/storage is Concurrent List (Entry 33, List III) — Centre acts through cooperative agencies and central schemes