Trade and markets
 

Detail

Area
India
Commodity Group
Oilseeds, oils and meals
Commodity
Grains, oilseeds
Date
18/07/2018
Policy Category
Production
Policy Instrument
Agricultural policy
Description
Significantly raised minimum support prices for the major 2018/19 Kharif crops.
Notes
The Indian Government significantly raised the minimum support prices for the major 2018/19 Kharif crops. The announcement came at a time when plantings were already in full swing. For oilcrops, the new per-tonne support prices (including crop-specific bonuses) and the corresponding year-on-year increases (in percent) are as follows: soybeans INR 33 990 (USD 485), 12 percent; groundnuts INR 48 900 (USD 698), 10 percent; sunflowerseed INR 53 880 (USD 769), 31 percent; sesameseed INR 62 490 (USD 892), 18 percent; and nigerseed INR 58 770 (USD 839), 45 percent. According to private sources, actual market prices stood well below the new support prices for groundnuts and sunflowerseed, but well above for soybeans and sesameseed. The support prices for cereals, cotton and pulses also saw important increases, possibly intensifying competition for acreage. Although support prices are announced for a large number of crops, public procurement operations are mostly limited to rice and wheat (see also MPPU May’18).