The Indian Vegetable Oil Producers’ Association (IVPA) has asked the government to implement the Price Deficiency Payment Scheme (PDPS) as envisaged under the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) to secure remunerative prices for farmers and to facilitate steady supply of oilseeds to domestic oil mills.
Welcoming the decision of the Cabinet Committee on Economic Affairs (CCEA) to increase the minimum support price (MSP) for oilseeds for the 2025–26 marketing season, Sudhakar Desai, President of IVPA, said: “A robust execution of PDPS will not only secure remunerative prices for farmers but also facilitate steady supply of oilseeds to domestic oil mills. This will enhance domestic processing capacity, increase availability of edible oils to consumers, and ensure consistent supply of oil cakes to the livestock and poultry sectors.”
What is PDPS
PDPS aims at ensuring remunerative prices to the producers of oilseeds whose MSPs are notified by the government. Under PDPS, the government pays farmers if the market price of the oilseed is less than the MSP. The payment covers the price difference, up to 15 per cent of MSP. Pre-registered farmers can sell up to 40 per cent of their production in a notified market yard through a transparent auction process within the stipulated period. The oilseeds must meet the prescribed fair average quality (FAQ) standards.
He said CCEA’s decision to increase the MSP for oilseeds for the marketing season 2025–26 is a timely and progressive step aligned with the national priority of enhancing oilseed production and reducing India’s dependency on imports.
“To ensure the success of this dual objective, we urge the government to consider extending procurement interventions beyond mustard to other major oilseeds. Such measures will provide price stability and support farmers across the oilseed spectrum,” he said.
Self-sufficiency
Encouraging the oilseed cultivation and providing comprehensive support to uphold MSP in oilseeds will contribute to greater edible oil self-sufficiency, reduce imports, and promote overall price stability in the edible oil ecosystem at the same time providing the feedstock to the related sectors like aqua, poultry and cattle feed industry at the right prices, he said.
IVPA President suggested that the government help stabilise the prices of oilmeals (de-oiled cakes) in the context of competition from DDGS (Distillers Dried Grains with Solubles).
The government has increased MSP to soyabean to ₹5,328 a quintal in 2025-26 from ₹4,892 a quintal in 2024-25, a growth of 8.9 per cent; sunflower to ₹7,721 a quintal (₹7,280 a quintal), a growth of 6.1 per cent; and groundnut to ₹7,263 a quintal (₹6,783 a quintal), a growth of 7.1 per cent.
Published on May 29, 2025