Home / Business and Economy / Rabi Crop Prices Dip Below MSP Amidst Inflation Concerns
Rabi Crop Prices Dip Below MSP Amidst Inflation Concerns
24 May
Summary
- Wheat and chana prices are 4-5% below their MSPs.
- Mustard prices surged 14% above MSP, while maize dropped 21%.
- India's retail inflation rose to a 14-month high in April.
As of May 24, 2026, average market prices for key Rabi crops in India show significant variation compared to government-set Minimum Support Prices (MSPs). Wheat and chana are trading 4-5% below their MSPs. Conversely, mustard prices have surged 14% above its MSP, offering a windfall to its growers.
Maize prices have fallen sharply by 21% below its MSP, creating challenges for those farmers. Lentil (masur) prices are slightly above their MSP. Government officials suggest that market fluctuations up to 5% below MSP are normal and do not necessitate intervention, allowing supply and demand to self-correct.
These price dynamics occur against a backdrop of rising inflation. India's overall retail inflation accelerated to a 14-month high of 3.48% in April 2026. Retail food inflation also increased to 4.2% in April.
