Gujarat Market Watch: Major Crops Struggle to Meet MSP Amid Fluctuating Arrivals

Gujarat Market Watch: Major Crops Struggle to Meet MSP Amid Fluctuating Arrivals

Gujarat’s latest agricultural market data for the 2026-27 season reveals a complex pricing landscape for local farmers. While Jowar and Wheat trade comfortably above the Minimum Support Price (MSP), essential crops like Groundnut, Cotton, and Pearl Millet (Bajra) are facing significant downward pressure, highlighting the ongoing volatility in the state’s vital commodities sector.

 

GANDHINAGAR – The latest market intelligence from Gujarat’s agricultural hubs presents a sobering reality for the state’s farming community. As the 2026-27 marketing season progresses, a significant disparity has emerged between the Union Government’s Minimum Support Price (MSP) and the actual rates realized at the mandis, particularly for high-volume commodities like Cotton and Groundnut.

The Price-Support Gap

While the MSP is designed to act as a financial safety net, several key crops in Gujarat are currently trading below these benchmarks. Groundnut, a cornerstone of the state’s oilseed sector, saw an average market price of Rs. 6,926.40 per quintal, trailing nearly Rs. 337 behind its MSP of Rs. 7,263.00. Similarly, Cotton—the lifeblood of the local textile economy—faced a deficit, with market rates hovering around Rs. 7,546.68 against a support price of Rs. 7,710.00.

Bajra (Pearl Millet) also remains under pressure, with market realizations averaging Rs. 2,632.84, falling short of the Rs. 2,775.00 threshold. These figures suggest that despite administrative efforts to stabilize the market, supply-demand dynamics continue to favor buyers in these specific categories.

Bright Spots in Cereals and Oilseeds

In contrast, Jowar (Sorghum) has emerged as the season’s overperformer. Trading at a commanding Rs. 4,639.71 per quintal, it has surged past its MSP of Rs. 3,699.00, indicating robust demand despite relatively low arrival volumes of just 37.72 metric tonnes.

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Wheat and Mustard also maintained a healthy posture, both trading slightly above their respective support prices. Mustard, in particular, fetched Rs. 6,275.46 against an MSP of Rs. 5,950.00, offering some respite to oilseed growers who have pivoted away from the struggling Groundnut and Sesamum segments.

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Comparative Market Data (2026-27 Season)

Commodity MSP (Rs./Quintal) Market Price (Rs./Quintal) Status vs. MSP
Jowar 3,699.00 4,639.71 Above
Wheat 2,425.00 2,581.61 Above
Mustard 5,950.00 6,275.46 Above
Cotton 7,710.00 7,546.68 Below
Groundnut 7,263.00 6,926.40 Below
Arhar (Tur) 8,000.00 7,638.56 Below

Arrival Trends and Economic Impact

The volume of arrivals continues to dictate the pace of the market. Cotton saw the highest influx with over 2,528 metric tonnes entering the markets, followed closely by Groundnut at 1,586 metric tonnes. The high arrival rate of Arhar (Tur)—totaling 1,406 metric tonnes—has likely contributed to its price softening to Rs. 7,638.56, well below the Rs. 8,000.00 MSP.

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The current data highlights a critical juncture for Gujarat’s agricultural policy. As the gap between "promised" and "actual" prices persists for staple crops, the focus shifts toward state intervention and procurement strategies. For the thousands of farmers currently offloading their yields, the discrepancy represents not just a statistical variance, but a direct impact on their seasonal profit margins and debt-servicing capabilities.

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