Rajasthan Farmers Sell Moong Below MSP as Government Delays Decision on Procurement Pricing

The moong (green gram) market in Rajasthan is currently witnessing significant fluctuations, with arrivals skyrocketing to nearly 63,000 tonnes since September 1, reflecting a tenfold increase compared to the previous year. However, the average price realized by farmers stands at ₹7,452 per quintal, which is 15% lower than the minimum support price (MSP) of ₹8,780 per quintal. Despite a modest strengthening of market prices to approximately ₹7,960 per quintal by mid-September, concerns remain over the inadequate remuneration for farmers, intensifying calls for a reevaluation of the procurement framework.

This price movement is being driven by multiple factors, including an unmet MSP and the government’s nominal increase of just 0.1% in moong MSP for the 2026-27 season. Farmers are expressing dissatisfaction with the current procurement practices, which they argue do not align with the realities of rapid crop maturity and market conditions. Local leadership is advocating for a shift in strategy, akin to the successful mustard awareness campaign, to bolster farmer earnings. The trend of increased arrivals, coupled with stagnant or declining prices, indicates deeper inefficiencies in supply chain logistics and market access for farmers, leading to potential crop area adjustments in the upcoming seasons.

In the short term, traders and investors should brace for a volatile market as farmers may reduce their acreage under moong in response to ongoing losses. This could lead to tighter supplies in the future if the current trend of low prices persists. Additionally, the political pressure for reform in the procurement process presents possible shifts that could influence price dynamics. Ultimately, retail investors should monitor government decisions regarding procurement policies closely, as these will be crucial in shaping both immediate trading opportunities and longer-term investment strategies in the moong market.

Source: Market Source

(Expert Note: This report was independently prepared by the Wealthova Commodities team.)