Price Support for Oilseeds in India: An Analysis of Minimum Support Price Trends and Growth

Abstract

Minimum Support Price (MSP) has long served as a key instrument of India’s agricultural price policy, particularly in the oilseed sector, which plays a vital role in ensuring the country’s edible oil security. However, despite sustained policy efforts, India remains substantially reliant on imports of edible oils, highlighting the need to evaluate the effectiveness and consistency of MSP in promoting domestic oilseed production. In this context, the present study analyses the trends and dynamics of MSP for major oilseeds and copra in India during the period 2014–15 to 2024–25. The study aims to examine changes in MSP over time, assess year-on-year and long-term growth patterns, and formulate appropriate policy recommendations for improving price support mechanisms in the oilseed sector. A descriptive and analytical research design was adopted using secondary data sourced from the Commission for Agricultural Costs and Prices (CACP), Government of India. Year-on-year growth rates and compound annual growth rates (CAGR) were employed to evaluate the growth and variability of MSP. The results indicate a steady increase in MSP for all oilseed crops, with comparatively higher growth observed in minor oilseeds and coconut products. In terms of CAGR, nigerseed (9.25%), ball copra (8.11%), milling copra (7.83%), and sesamum (7.26%) recorded greater long-term growth in MSP than major oilseeds such as groundnut and soybean. The findings emphasise the importance of developing a more stable, predictable, crop-specific, and procurement-oriented MSP framework to strengthen farmers’ confidence and encourage oilseed production. Effective implementation of MSP, supported by complementary policy measures, can help reduce India’s dependence on edible oil imports and promote sustainable development of the domestic oilseed sector.