CA-20260930-7559Exam Essential
Agriculture Ministry Approves ₹5,547.99 Crore PSS Procurement for Kharif 2026-27
30 Sept 2026
4 min read
Source:PIB India (Press Information Bureau)
The Union Ministry of Agriculture has sanctioned ₹5,547.99 crore under the Price Support Scheme to procure major pulses and oilseeds across three states for the Kharif 2026-27 season. This intervention aims to protect farmers from distress sales by ensuring guaranteed Minimum Support Prices.
Key Highlights
- Uttar Pradesh has been allocated the highest financial share of ₹3,992.57 crore, covering 4,66,000 metric tonnes of Tur and 6,250 metric tonnes of Moong.
- Karnataka's procurement layout stands at ₹1,107 crore, targeting 1,15,500 MT of Soybean, 38,250 MT of Moong, and 13,413 MT of Sunflower.
- Telangana has received an approval of ₹448.42 crore for procuring 62,000 MT of Soybean and 10,766 MT of Moong.
- The operational mechanism relies entirely on the Price Support Scheme (PSS), executed centrally to prevent downward price fluctuations during peak harvest periods.
Exam Quick Facts
Nodal Ministry / Dept
Ministry of Agriculture and Farmers Welfare (कृषि एवं किसान कल्याण मंत्रालय)
Key Bodies
National Agricultural Cooperative Marketing Federation of India (NAFED), Food Corporation of India (FCI), Small Farmers' Agri-Business Consortium (SFAC)
Constitutional & Legal Context
Implemented under the umbrella of the PM-AASHA (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan) scheme framework.
Static GK Connection
The Price Support Scheme (PSS) is physically implemented by central nodal agencies along with state governments, ensuring procurement of pulses, oilseeds, and copra at the notified MSP when market prices drop.
In-Depth Editorial Analysis
The Union government's recent sanction of ₹5,547.99 crore for the Kharif 2026-27 season under the Price Support Scheme (PSS) highlights a strategic policy shift towards correcting historical crop imbalances. India's agricultural economy has long suffered from a cereal-centric procurement bias, particularly towards paddy and wheat, which led to ecological stress in northwestern states and a persistent domestic deficit in pulses and edible oils. By proactively targeting key protein and oilseed crops such as Tur, Moong, Soybean, and Sunflower across Uttar Pradesh, Karnataka, and Telangana, the government aims to incentivize diversification towards nutri-cereals and oilseeds, addressing India's high import dependency on edible oils.
Operationally, the Price Support Scheme functions as a vital safety net deployed when market prices of notified commodities fall below the government-announced Minimum Support Price (MSP). Central nodal agencies like NAFED and FCI, in active coordination with state-designated procurement agencies, undertake physical acquisition directly from registered farmers. The large-scale allocations—such as nearly ₹4,000 crore for Uttar Pradesh alone—require robust logistics, decentralized storage infrastructure, and direct benefit transfer (DBT) mechanisms to ensure transparency and eliminate leakages. Timely execution prevents distress sales by small and marginal farmers who lack holding capacity.
From a macroeconomic perspective, this measure aligns with India's long-term objective of achieving 'Atmanirbharata' (self-reliance) in pulses and oilseeds, thereby mitigating imported inflation risks. However, structural challenges remain, including regional disparities in procurement infrastructure, delayed payments, and soil-water constraints in expanding oilseed cultivation in semi-arid zones. Going forward, bridging procurement gaps in eastern and southern states, coupled with robust e-NAM integration and private-public warehousing partnerships, will be critical to transforming PSS into a seamless, pan-India market stabilization instrument.
Official Reference:PIB India (Press Information Bureau)