Punjab’s Agriculture Pulse: Cotton Defies MSP While Vegetables Face Price Volatility

The cereal sector continues to show stability, particularly with Wheat, which remains the cornerstone of the state's procurement. Trading at an average of ₹2,520 per quintal, Wheat is comfortably surpassing its MSP of ₹2,425, although arrival volumes remain in the early stages at approximately 4.50 metric tonnes. Similarly, Maize has seen a consistent market presence with prices hovering around ₹2,145 per quintal against an MSP of ₹2,400. While the cereal market remains the backbone of rural income, the oilseeds sector, specifically Mustard, has recorded premium pricing, with market rates reaching ₹6,384 per quintal, significantly outperforming the government-mandated floor price of ₹5,950.

However, the narrative shifts toward uncertainty when examining the vegetable markets, which lack the safety net of an MSP. Onion prices have witnessed a downward trend, dropping from a peak of ₹1,559.56 to roughly ₹1,342.35 per quintal, even as supply volumes surged toward the 340-metric-tonne mark. The potato market remains under even greater pressure; despite a massive influx of arrivals—peaking at over 904 metric tonnes—prices have dwindled to a low of ₹409.27 per quintal, a sharp contrast to the ₹529.87 seen earlier in the cycle. This inverse relationship between high arrival volumes and plummeting prices underscores the perennial challenges of storage and market glut faced by Punjab’s horticulturalists. Tomato prices have remained relatively resilient, maintaining a steady range between ₹1,154 and ₹1,202 per quintal amidst modest supply levels.

As the administrative machinery monitors these arrivals, the data highlights a clear divide between protected commodities and the volatile open market. The ability of Cotton and Mustard to stay above MSP levels provides a much-needed boost to crop diversification efforts in the region. Conversely, the drastic price drop in Potato and Onion markets serves as a stark reminder of the risks inherent in perishable goods. For policymakers and traders alike, the current season emphasizes that while Punjab remains a powerhouse of production, the stability of farmer income remains deeply tethered to the delicate balance of supply chain efficiency and market demand.