- Why in news
- On 30 March 2026, Agriculture Minister Shivraj Singh Chouhan approved procurement of over 18 lakh tonnes of Rabi pulses and oilseeds at MSP under the Price Support Scheme in Haryana, Uttar Pradesh and Karnataka, worth over Rs 11,698 crore.
- What it is
- The Price Support Scheme (PSS) lets the Centre buy pulses, oilseeds and copra from farmers at MSP when market prices fall below it. States send proposals and the Centre approves the quantity. Procurement is done through central nodal agencies such as NAFED and NCCF.
- Karnataka safflower
- Only 25 per cent of the state's proposal, 6,923 tonnes of kusum (safflower), was approved, at an MSP of Rs 65,400 per tonne.
- Payment mechanism
- States already have POS-based procurement in place, which is meant to ensure transparent payment to farmers.
- Nodal agencies
- Central nodal agencies NAFED and NCCF carry out PSS procurement. PSS is part of the PM-AASHA umbrella scheme.
Don’t confuse with PSS vs Price Stabilisation Fund (PSF): PSS buys crops at MSP to protect farmers when prices fall. PSF builds buffer stocks to control consumer prices of pulses and onions.
Don’t confuse with PSS vs Price Deficiency Payment Scheme (PDPS): Under PSS the government physically buys the crop. Under PDPS it pays farmers the difference between MSP and the market price, without buying.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Assured MSP buying protects farmers from distress sales when market prices fall.
- It supports the aim of raising domestic pulse and oilseed output and reducing import dependence.
Problems
- Approved quantities are often only a fraction of the state's proposal (for example 25 per cent for kusum), which limits the number of farmers who benefit.
- Procurement is uneven across states and crops, and storage and payment delays can arise.
Way forward
- Raise procurement ceilings and widen state coverage, with timely payment through digital systems.
- Pair PSS with market reforms and crop diversification to strengthen pulse and oilseed output.
- 2018Mains GS3 · Q3Define MSP and explain how it can lift farmers out of the low-income trap
- 2024Mains GS3 · Q14Importance of buffer stocks for stabilising farm prices, and storage challenges
- 2017Mains GS3 · Q15Significance of MSP, crop insurance and food processing for small farmers
- 2004Prelims Q77Whether government uses procurement targets, and which crops get minimum support prices
- 2020Prelims Q69Whether MSP procurement is unlimited for cereals, pulses and oilseeds in any state
- 2023Prelims Q27Statements on MSP for niger seed, its kharif cultivation, and tribal oil use
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Lasting MSP procurement mechanism, but this release is a state-wise approval with little new.
Worth revising until Prelims 2027: most news questions come within two years of the event.