Market Turmoil in Madhya Pradesh as Major Crop Prices Plummet Below Minimum Support Levels

Market Turmoil in Madhya Pradesh as Major Crop Prices Plummet Below Minimum Support Levels

Agricultural markets in Madhya Pradesh face a crisis as prices for Bajra, Maize, and Groundnut fall significantly below the 2026-27 MSP. With high arrival volumes impacting trade, farmers are struggling to secure government-mandated rates for staple crops. Read the latest analysis on the price disparity and market trends across MP's major commodity groups.

 

Agricultural markets across Madhya Pradesh are witnessing a period of significant volatility as several staple crops are being traded at prices substantially lower than the Government of India’s mandated Minimum Support Price (MSP) for the 2026-27 season. Data from the state’s primary mandis reveals a concerning trend for local farmers, particularly within the coarse cereals and oilseeds sectors. Bajra, which carries an MSP of 2,775.00 per quintal, is currently fetching as little as 1,634.23 per quintal in certain districts, marking a massive deficit that threatens the thin margins of small-scale cultivators. Similarly, Maize is facing a sharp downturn; despite a set MSP of 2,400.00, market arrivals exceeding 21,000 metric tonnes have pushed trading prices down to a low of 1,540.67 per quintal.

The price disparity is not limited to cereals. In the oilseeds category, Groundnut is trading at 5,839.12 per quintal against an MSP of 7,263.00, while Mustard is narrowly trailing its support price of 5,950.00, with current market rates hovering around 5,838.02. Even the fibre segment is feeling the squeeze, as Cotton prices have dipped to 7,180.57 per quintal, nearly 500 below the official benchmark of 7,710.00. While some commodities like Paddy (Common) and Barley are bucking the trend—with Paddy trading at a premium of over 4,000.00 per quintal against an MSP of 2,369.00—the broader picture remains one of administrative and economic concern for the state’s agricultural department.

Administrative officials and market observers are closely monitoring the heavy arrivals of Wheat and Maize, which have reached 23,094 and 21,632 metric tonnes respectively, to determine if the high supply volume is the primary driver behind the price cooling. While Niger Seed remains a high-value niche crop, trading above its 9,537.00 MSP at 9,705.00, the overall struggle of primary staples to meet the MSP threshold raises critical questions regarding market intervention strategies. As the 2026-27 marketing season progresses, the widening gap between policy-driven price floors and real-world trade values continues to place immense pressure on the agrarian economy of Madhya Pradesh, necessitating a potential shift in procurement oversight to ensure farmer livelihoods are protected against further market erosion.

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