1 hr ago
Kharif Crop Prices Seen Strong, Except Bajra and Moong
Farmers are about to bring new Kharif crops to markets in roughly 10 days.
Experts expect many crops to receive good prices.
Nine of the 14 crops with government-set MSPs were already selling at or above those prices on September 4.
Bajra and Moong were the main exceptions, selling below MSP.
Government buying helps support paddy prices, especially once procurement begins in each state.
Some experts think maize prices could fall when more of the crop reaches markets.
Other experts warn that El Niño may reduce production this season.
They also say government sales of stored Moong could keep its price below MSP.
Overall, most crop prices are expected to stay close to or above their MSPs.
Nine of 14 Kharif crops with announced MSPs sold at or above their 2026-27 MSPs on September 4.
Bajra and Moong prices were 31% and 13% below their respective MSPs.
Maize, Jowar, Tur and Urad traded up to 11% above MSP, while Paddy, Groundnut and Soyabean remained below it.
Paddy averaged ₹1,965 per quintal in Uttar Pradesh, where government procurement influences market rates.
Lower sowing areas for maize and paddy, along with possible El Niño-related production losses, could affect prices.
- Who
- Farmers, traders, government procurement agencies and agriculture experts are involved; the analysis cites a former agriculture ministry official and S K Singh, a former additional managing director of Nafed.
- What
- Mandi prices and the outlook for 14 Kharif crops with announced MSPs are being assessed ahead of the new harvest.
- Where
- The outlook covers major producing states in India, with specific prices cited for Uttar Pradesh and crop conditions noted in Gujarat.
- When
- The price data are from September 4, 2026, and the article was published on September 6, 2026; new crops are expected in mandis in about 10 days.
- Why
- Prices may be affected by government procurement, incoming harvest supplies, sowing-area changes, possible El Niño-related production losses and government stock sales.
Favourable Price Outlook
Production and Market Risks
Overall crop prices
Favourable Price Outlook
A former agriculture ministry official said most crops should receive favourable prices, with government procurement supporting paddy and soyabean and groundnut prices expected to rise.
Production and Market Risks
S K Singh said El Niño could cause definite production losses, while current prices may already reflect market concerns.
Maize prices
Favourable Price Outlook
Maize is currently trading above MSP, up to 11% higher for the crops in that group.
Production and Market Risks
The former agriculture ministry official expects maize prices to fall when the crop arrives because it will compete with soyameal and DDGS for animal-feed demand.
Soyabean market
Favourable Price Outlook
Soyabean prices are currently higher than last year despite strong imports of soyabean oil.
Production and Market Risks
Singh described a sudden soyabean price drop as surprising and said cartelisation may be responsible, suggesting the decline may not last.
Moong prices
Favourable Price Outlook
Most major crops are expected to align with MSP for FAQ-grade produce.
Production and Market Risks
Government agencies selling stored Moong could keep its price below MSP.
Key facts
- Crops at or above MSP
- Nine of 14 Kharif crops with announced MSPs were sold at or above their 2026-27 MSPs on September 4.
- Bajra price gap
- Bajra was trading 31% below its next-season MSP.
- Moong price gap
- Moong was trading 13% below its next-season MSP.
- Paddy price in Uttar Pradesh
- The average paddy price was ₹1,965 per quintal.
- Maize acreage
- Maize sowing was 3% lower year over year, at 91 lakh hectares.
- Paddy acreage
- Paddy acreage was 4% lower year over year, at 421.82 lakh hectares.
- Soyabean and groundnut acreage
- The area planted with each crop was about 1 lakh hectare lower than a year earlier.
Quotes
Former additional secretary in the agriculture ministry
Former senior official in India’s agriculture ministry commenting on paddy procurement and prices
“There is no problem with paddy as the government has been procuring 40 per cent of production.”
thehindubusinessline.com
S K Singh
Former additional managing director of cooperative major Nafed
“Going by the historical data and impact of El- Nino in previous years, there seems to be definite production loss this season.”
thehindubusinessline.com
Sources
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