The latest bulletin of the Reserve Bank of India (RBI) states that due to bumper yield of kharif and rabi crops, the average market price of major food crops except wheat is running below the minimum support price. PTI news so far (till May 19) has seen softening of both grain and pulses in high frequency food price data. The central government has fixed the minimum support price (MSP) for 23 crops. It has 14 kharif, 7 rabi and 2 commercial crops. However, it purchases some items, especially wheat and rice for the central pool for the purpose of food security.
Edible oil prices continue to increase
According to the news, an article published in the RBI’s May Bulletin further stated that on the other hand, the prices of edible oil continued to rise – due to soybean, sunflower and mustard oil, while palm and peanut oil prices were softened. In the main vegetables, onion prices were further improved, while potatoes and tomato prices saw a rise. Bulletin states that after a series of policy measures to deal with bumper yields of kharif and rabi crops as well as policy measures to deal with food inflation, the average market prices of major food crops (except wheat) seem to decrease and they are below their minimum support price (MSP), which is a good sign for the country’s food security.
Data from April 1 to May 19, 2025 period
Bulletin authors stated that the data of average market prices explains the period from 1 April to 19 May 2025. The central bank said that the views expressed in the article belong to writers and do not represent the views of the Reserve Bank of India. Rajasthan and Madhya Pradesh have announced a bonus of Rs 150 per quintal and Rs 175 per quintal on MSP for wheat.
In the case of summer crops, the article states that sowing in pulses is almost complete. As of May 16, 2025, sowing of paddy (about 43 percent of the total summer area) was 107. 6 percent of the normal area of the entire season, while sowing of moong (about 27 percent of the total season area) was 108. 2 percent.
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