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Mustard prices below MSP: farmers urge Govt intervention

Thousands of farmers are continuing their protest at the borders of Delhi, demanding a legal guarantee of minimum support price (MSP)

By Ground report 22 Feb 2024

New Update

Mustard prices below MSP: farmers urge Govt intervention

Thousands of farmers are continuing their protest at the borders of Delhi, demanding a legal guarantee of minimum support price (MSP) for their crops, as the mustard prices have fallen below the MSP in the major producing states. The edible oil industry has also urged the government to intervene and procure mustard at MSP to stabilise the market and support the farmers.

According to the Agmarknet portal, the current price of mustard in Rajasthan, the top producer of the oilseed, ranged from Rs 3,873 to Rs 5,600 per quintal, which is lower than the MSP of Rs 5,650 per quintal announced by the government for the rabi marketing season 2024-25. Only in 16 out of 147 mandis in the state, the prices were at or above Rs 5,000 per quintal.

The farmers fear that the prices will decline further with the arrival of the new crop by next month, as they expect a record harvest due to favourable weather conditions. The agriculture ministry data showed that mustard was sown in 100.4 lakh hectares as of February 2, 2024, about 250,000 hectares more than in 2022-23, Down to Earth reported.

The farmers’ protest, which began in 2020 against the controversial farm laws, has entered its ninth day on February 21, 2024. The farmers are demanding that the government should enact a law to ensure MSP for all 23 crops for which it is declared every year. They argue that MSP is the only mechanism that can protect them from the volatility of the market and the exploitation by the traders.

After a year-long agitation, the government, which repealed the farm laws in 2021, has offered to guarantee procurement through cooperative agencies for five years for pulses, maize and cotton, which are not covered under the existing procurement system. However, the farmers have rejected this proposal, saying that it is not in their favour and that it is a diversion from the main issue of MSP.