The indigenous gram market is poised for prosperity as production falls short of demand. Due to supply gaps, the government’s strategic move to release chickpeas from the buffer stock has encountered private sector competition amid elevated prices. While a minor correction followed the simultaneous price surge, signs indicate a potential rise to $0.78 per kg.
27-28 percent in chana production
The most recent survey report indicates a significant shortfall of 27-28 percent in chana production across key producing states like Madhya Pradesh, Maharashtra, Rajasthan, Andhra Pradesh, and Karnataka. The crux of the matter lies in the gradual shift of farmers towards peas and lentil cultivation due to sluggish demand for gram over the past three years.
Consequently, reduced cultivation area and decreased productivity per hectare have taken their toll. Maharashtra has witnessed reduced sowing and a 7 percent productivity drop, while Madhya Pradesh’s Indore, Bhopal, and Sagar regions faced a 4 percent decline. Gwalior, Satna, and areas of Jabalpur maintained normalcy but decreased sowing led to plummeting arrivals. Rajasthan’s case echoed the trend, witnessing a drastic decline in overall production due to reduced sowing and unfavorable weather during crop preparation.
Weather conditions
Unfavorable weather conditions during crop preparation resulted in smaller grain size, compounded by a 32 percent reduction in sown area. Many farmers turned to cultivating mustard and lentils instead. These circumstances collectively culminated in a drop in production from 110 lakh metric tonnes to 7.0 million metric tonnes. The government set a minimum support price of $0.64 per kg, procuring around 1.6 million metric tonnes of indigenous gram from farmers in April and May.
A correction ensued in the market after a booking-driven setback. However, this minor setback will reverse as the market’s bullish streak prevails. While the government contributes to the chickpea market through strategic sales, the limited supply of paddy impedes larger-scale transactions. According to market wizards, Chickpea’s journey remains dynamic and full of surprises as the dust settles, promising an intriguing rise in the coming days.