Centre rejects below-MSP claims, says Punjab wheat prices stayed above support price
The Centre told Parliament that Punjab wheat and paddy sold above MSP, with wheat averaging ₹2,597/quintal against the ₹2,585 MSP. It attributed lower early wheat procurement to unseasonal rainfall, reaffirmed MSP procurement, and said farmers remain free to sell either to government agencies or in the open market.
The Centre has told Parliament that wheat sold in Punjab during the 2026 procurement season fetched an average mandi price higher than the Minimum Support Price (MSP), rejecting concerns that farmers were forced to sell their produce below the government-fixed rate.
Responding to an unstarred question raised by Bathinda MP Harsimrat Kaur Badal in the Lok Sabha, Minister of State for Consumer Affairs, Food and Public Distribution Nimuben Jayantibhai Bambhaniya said the average mandi price of wheat in Punjab during May 2026 stood at ₹2,597 per quintal, exceeding the notified MSP of ₹2,585 per quintal. The government also informed the House that the average mandi price of paddy in Punjab during 2025 was ₹2,389 per quintal, which was also above the MSP.
The reply came after the MP sought clarification on reports claiming that wheat was being sold below the MSP and that farmers were facing distress because of lower market prices.
On wheat procurement, the Centre acknowledged that purchases during the first fortnight of April 2026 were lower than the corresponding period last year.
According to the government, 2.47 lakh metric tonnes (LMT) of wheat were procured during the period, compared with 3.23 LMT in the same fortnight of the previous year, reflecting a decline of around 23 per cent.
The government attributed the slower procurement to quality issues caused by unseasonal rainfall. It informed Parliament that specifications for wheat procurement under the 2026-27 Rabi Marketing Season were relaxed on April 17 to facilitate timely procurement of rain-affected wheat and reduce hardship for farmers.
On the issue of MSP, the Centre reiterated that Minimum Support Prices are announced every year for 22 mandated crops based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), after consultations with state governments, central ministries and other stakeholders.
The government said CACP considers multiple factors while recommending MSP, including the cost of production, domestic and international market conditions, overall demand and supply, inter-crop price parity, and the likely impact on the wider economy. It also noted that, in line with the policy announced in the Union Budget 2018-19, MSP for all mandated Kharif, Rabi and other commercial crops is fixed at a level that provides a margin of at least 50 per cent over the weighted average cost of production.
Reaffirming its procurement policy, the Centre said government agencies continue to procure wheat and paddy at MSP to ensure remunerative prices for farmers. At the same time, growers remain free to sell their produce either to government procurement agencies at MSP or in the open market, depending on which option offers them better returns.
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Source : The Statesman
