·PIB·15 marks·250–350 words

"MSP for pulses and oilseeds remains largely notional without effective procurement." Critically examine this in the light of PM-AASHA.

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In this answer
  1. How PM-AASHA makes MSP real
  2. Why MSP still remains largely notional
  3. Conclusion

The government announces a Minimum Support Price (MSP) for pulses and oilseeds, but farmers get it only if an agency actually buys at that price. PM-AASHA brings together three tools: the Price Support Scheme (PSS), the Price Deficiency Payment Scheme (PDPS) and the Market Intervention Scheme (MIS) [2]. It has narrowed this gap but not closed it.

How PM-AASHA makes MSP real

  • Large-scale buying: For KMS 2026-27, ₹5,547.99 crore was approved to buy tur, moong, soybean and sunflower in UP, Karnataka and Telangana. Payment goes directly into farmers' bank accounts [1].
  • Full buying for some pulses: The limit on how much can be bought was removed for tur, urad and masoor, so up to 100% of a state's crop can be procured [3]. The ₹11,440 crore Pulses Mission commits NAFED and NCCF to buy these crops for four years [4].
  • Support without buying the crop: PDPS pays farmers the gap between MSP and the market price, so the government does not need to buy and store the crop [2].

Why MSP still remains largely notional

  • The 25% limit: For other pulses and oilseeds, PSS buying starts with a limit of 25% of state production [3]. So about three-quarters of the soybean and moong crop is still sold at market prices.
  • Approval state by state: Buying is approved for each state separately [3]. If approval comes late, farmers may already have sold cheaply at harvest.
  • Spending concentrated in one crop: Tur alone is about 71% of the 2026-27 amount [1]. Moong is not covered by the 100% buying promise [4].
  • Trade policy works against it: Cutting Basic Customs Duty on crude edible oils from 20% to 10% [5] makes imported oil cheaper and pulls down prices for Indian oilseeds. India already imports 56% of its edible oil [6].

The Parliamentary Standing Committee on Agriculture has therefore recommended raising PM-AASHA buying from 25% to 100% [6].

Conclusion

The statement is largely true for oilseeds and for pulses outside the Pulses Mission. It is less true for tur, urad and masoor. The way forward is to:

  • extend PDPS for oilseeds, using digital land and crop records;
  • make sure states ask for buying on time;
  • keep import duties consistent with NMEO-Oilseeds' goal of about 72% self-sufficiency by 2030-31 [7].

Making MSP work for these crops will support self-reliance in pulses and edible oils and help farmers move away from rice and wheat.

Sources

  1. 1PIB: Shri Chouhan Approves ₹5,547.99 Crore Procurement of Pulses and Oilseeds Under PSS for Kharif 2026-27: sanction value, states and crops, direct payment, tur's share
  2. 2PIB: Cabinet approves continuation of schemes of PM-AASHA: PSS, PDPS and MIS as parts of PM-AASHA; PDPS pays the price gap
  3. 3PIB: Empowering Farmers Through PM-AASHA: 25% of state production limit, approval given to each state, limit lifted for tur, urad and masoor
  4. 4PIB: India's Mission for Aatmanirbharta in Pulses: ₹11,440 crore outlay, 100% buying of tur, urad and masoor by NAFED and NCCF for four years
  5. 5PIB: Centre reduces Basic Custom duty (BCD) on major imported Crude edible Oils from 20% to 10%: import duty cut
  6. 6PRS Legislative Research: Standing Committee Report Summary, Availability of Oilseeds and Pulses (2026): 56% edible oil imports, recommendation to raise buying from 25% to 100%
  7. 7PIB: Cabinet Approves NMEO-Oilseeds for 2024-25 to 2030-31: goal of about 72% self-sufficiency in edible oil

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