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    Hike in MSP of crops likely to raise prices of pulses, oilseeds

    Synopsis

    The price of moong and chana whose MSP was hiked by 6.3% and 4.6%, respectively, rose slightly in major wholesale markets of Mumbai, Indore and Delhi on Tuesday, said Suresh Aggarwal, president of the All India Dal Mills Association.

    Agencies
    The current trajectory of prices is up due to the extended monsoon and the MSP hike will add to this sentiment, said Prerana Desai, head of rural and corporate services research at Edelweiss. (File photo)
    The increase in the minimum support prices (MSP) of crops will raise prices of pulses and oilseeds in the days ahead, but it would also encourage higher planting and increase output, trade bodies said.

    The price of moong and chana whose MSP was hiked by 6.3% and 4.6%, respectively, rose slightly in major wholesale markets of Mumbai, Indore and Delhi on Tuesday, said Suresh Aggarwal, president of the All India Dal Mills Association.

    “We can expect prices to rise 5% by the weekend. This will also lead to increase in planting of pulses and reduce our import dependence,” Aggarwal said.

    Edible oil prices will continue to remain firm with the new mustard crop expected to arrive in February-March, said BV Mehta, executive director of Solvent Extractors Association of India. He said the current price of mustard was already 18% higher than the increased MSP.

    "This year definitely, the government will not have to step in for procurement and we expect the acreage under mustard seed to increase," said Sandeep Bajoria, chief executive officer of oil consultancy firm, Sunvin Group.

    He added that both soyabean and mustard prices in the futures market saw a nominal increase on Tuesday.

    The current trajectory of prices is up due to the extended monsoon and the MSP hike will add to this sentiment, said Prerana Desai, head of rural and corporate services research at Edelweiss.
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    3 Comments on this Story

    Ajit Grewal118 days ago
    Completely ridiculous. Oilseeds sell below MSP in all mandis in the north definitely. This is just the great indian baniya and hoarder taking advantage of the howdy bhai modi bhai announcements and providing necessary political support.
    varadharajan balasubramanian118 days ago
    MSP announced by the Government may not help farmers but it will add to the difficulties of the common man. In the coming festival season like Deepavali and Christmas the prices fo food grains and cooking oil will shoot up.
    Subbu India119 days ago
    Hike prices of everything and lower the earning of every citizens is the motto of this Government.
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