Mumbai: Average mandi prices of major food crops, barring wheat, are ruling below the minimum support price due to bumper harvest of kharif and rabi crops, according to the latest Reserve Bank bulletin.
Also, high-frequency food price data for May so far (up to May 19) showed a broad-based moderation in prices of both cereals and pulses.
Central government fixes the minimum support price (MSP) for 23 crops -- 14 kharif, seven rabi and two commercial crops. However, it procurers few commodities, especially wheat and rice for the central pool for the purpose of food security.
An article on the state of the economy published in the RBI's May Bulletin further said that edible oil prices, on the other hand, continued to edge up -- driven by soyabean, sunflower and mustard oil, while palm and groundnut oil prices moderated.
Among key vegetables, prices of onion recorded further correction, while potato and tomato prices showed an uptick.
"Following the bumper harvest of the major kharif as well as rabi crops along with the series of policy measures to combat food inflation, the average mandi prices of major food crops (except wheat) appear to have eased and are ruling below their minimum support prices (MSPs), auguring well for the nation's food security," the article said.
Authors of the article said the data for average mandi prices refers to the period from April 1 to May 19, 2025.
The central bank said the views expressed in the article are those of the authors and do not represent the views of the Reserve Bank of India.
Rajasthan and Madhya Pradesh have announced a bonus of Rs 150/quintal and Rs 175/quintal over MSP for wheat.
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In the case of summer crops, the article said sowing, especially in pulses, is nearly complete.
As of May 16, 2025, the sowing of paddy (accounting for around 43 per cent of total summer acreage) was at 107.6 per cent of full season normal area, while that of green gram or moong (accounting for around 27 per cent of total season's acreage) was at 108.2 per cent.
The cumulative summer acreage stood at 80.7 lakh hectare which is 11.9 per cent higher over the corresponding week's acreage during the previous year.
Going ahead the above normal rainfall forecast for Southwest Monsoon 2025 season (105 per cent of the LPA) and its likely early onset augurs well for the upcoming kharif season, the article said, and added that the requirement projected for the major fertilisers (except phosphatic fertilisers) is also higher as compared to the previous year.
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