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Indian govt approves pulses, oilseeds procurement at support prices in Gujarat and UP
Breaking India News Today | In-Depth Reports & Analysis – IndiaNewsWeek > Economy > Indian Government Authorizes Pulse and Oilseed Support Price Procurement in Gujarat, UP
Economy

Indian Government Authorizes Pulse and Oilseed Support Price Procurement in Gujarat, UP

Economy Desk By Economy Desk September 24, 2025 4 Min Read
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The Indian government has sanctioned the procurement of tur (pigeon pea), urad (black matpe), moong (green gram), groundnut, soybean, and sesame at their respective minimum support prices (MSPs) from farmers in Uttar Pradesh and Gujarat, according to an announcement made by the Agriculture Ministry on Tuesday. This initiative is set to involve an estimated expenditure of ₹13,890 crore for the kharif 2025-26 season.

Union Agriculture Minister Shivraj Singh Chouhan has approved the procurement strategy for these key pulses and oilseeds in Uttar Pradesh and Gujarat. The announcement details that while 100% of urad and tur production can be procured at MSP, a 25% cap applies to moong, sesame, soybean, and groundnut. Under the PM-ASHA procurement scheme, the National Agricultural Cooperative Marketing Federation of India (Nafed) and other designated agencies will carry out the procurement, with any potential losses reimbursed by the Central government.

For Uttar Pradesh, the government has authorized procurement of tur, urad, moong, groundnut, and sesame. In Gujarat, the approved crops include moong, urad, groundnut, and soybean. Minister Chouhan has directed both states to ensure that payments are made digitally and transparently, directly into farmers’ bank accounts.

In Uttar Pradesh, urad production is estimated at 2.28 lakh tonnes (lt), with tur production at 1.14 lt. If the government procures 100% of these crops, transfers to farmers would amount to ₹1,777.30 crore for urad and ₹910.24 crore for tur. Additionally, procurement estimates include 1,983 tonnes of moong (valued at ₹17.38 crore), 30,410 tonnes of sesame (valued at ₹299.42 crore), and 99,438 tonnes of groundnut (valued at ₹722.22 crore).

In Gujarat, estimated urad production stands at 47,780 tonnes, which could yield ₹372.68 crore if fully procured. The targeted purchase for soybean is set at 1.10 lt (valued at ₹585.57 crore), while groundnut procurement is estimated at 12.62 lt (valued at ₹9,167.08 crore) and moong at 4,415 tonnes (valued at ₹38.71 crore).

Chouhan has assured that the approved procurement quantities will be re-evaluated, if necessary, after the first advance estimates for the kharif 2025-26 season are released. He emphasized the need to ensure that only genuine farmers benefit from the MSP, preventing exploitation by middlemen. The Agriculture Ministry has instructed Nafed and the National Cooperative Consumers Federation (NCCF) to procure exclusively from pre-registered farmers.

According to a report by Businessline, average mandis (agricultural market yard) prices for key kharif pulses and oilseeds were observed to be lower than their respective MSPs during September 1-18, with prices ranging from ₹1,076 to ₹1,778 per quintal. Moong was sold at an average of ₹7,220 per quintal against its MSP of ₹8,768, urad at ₹6,368 against ₹7,800 MSP, and tur at ₹6,222 per quintal compared to an MSP of ₹8,000. Similarly, groundnut averaged ₹5,682 per quintal against an MSP of ₹7,263, while soybean sold at ₹4,252 per quintal against its MSP of ₹5,328.

Published on September 23, 2025.

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