Overview

• Average mandi prices for major food crops, excluding wheat, have dropped below the government-set Minimum Support Price (MSP) due to bumper rabi and kharif harvests.
• Wheat farmers benefit from state bonuses, with Rajasthan and Madhya Pradesh offering Rs 150/quintal and Rs 175/quintal over MSP, respectively.
• High-frequency data for May shows broad-based moderation in cereal and pulse prices, while edible oil costs rise for soyabean, sunflower, and mustard oils.
• Summer sowing is ahead of schedule, with paddy and green gram acreage exceeding 107% of normal levels, and total summer acreage up 11.9% year-on-year.
• The Southwest Monsoon 2025 is forecast to be above normal, with early onset and increased fertilizer demand, signaling a strong outlook for the kharif season.