Central government approves major crop purchases to prevent distress sales

Union Agriculture Minister Shivraj Singh Chouhan has sanctioned the procurement of 20 lakh metric tonnes of potatoes in Uttar Pradesh to protect growers from falling market prices. This decision, finalized during a high-level review meeting, establishes a Market Intervention Price (MIP) of Rs 6,500.90 per tonne. The financial commitment from the Central government for this specific initiative is projected at Rs 203.15 crore, aiming to provide a safety net for farmers who often face volatile price swings during peak harvest seasons.

Beyond the northern plains, the Ministry has also extended significant support to pulse farmers in South India. In Andhra Pradesh, the ceiling for chana (Bengal gram) procurement under the Price Support Scheme has been raised from 94,500 tonnes to over 1.13 lakh tonnes. Similarly, Karnataka's tur (pigeon pea) farmers received a 30-day window extension, allowing them to sell their produce at Minimum Support Prices until May 15, 2026.

Odisha Connection and National Impact

Stabilizing potato prices in Uttar Pradesh often has a ripple effect on Odisha’s markets, as the state frequently relies on UP’s surplus to manage its own retail kitchen staples. Historically, supply disruptions in these major producing hubs have led to sharp inflation in eastern Indian corridors.

Strategic Market Intervention

These approvals function through NAFED and other state agencies to ensure that market gluts do not lead to forced liquidations at a loss. By increasing the procurement caps and extending deadlines, the Centre intends to absorb excess supply, thereby maintaining a balanced price floor.

Support for Pulses

Focusing on tur and chana aligns with the broader national goal of achieving self-sufficiency in protein sources. The extension in Karnataka specifically addresses late-season harvests, ensuring that small-scale cultivators are not excluded from government-backed pricing.

​​​​​​​​​​​​​​Image Courtesy: PIB