New Delhi, Oct. 24 -- The Centre is working on a contingency plan to prevent distress sales during the ongoing procurement season, at a time when crop prices have slipped below the minimum support price (MSP) in many states.

Officials from the agriculture ministry, department of food and public distribution and Niti Aayog are discussing the low prices of oilseeds, onion, wheat, rice and pulses that have kept retail inflation below 2%, two people aware of the matter said. The officials have discussed increasing procurements to protect farmer incomes, the people said, following the steep disinflation in the prices of pulses and oilseeds this year, following a sharp surge in FY24.

"The fall in prices of essential commodities below MSP is a...