Price Trends In The Domestic Market
The price of pulses, including gram, is anticipated to surge, making chickpeas the second cheapest pulse. Retail prices of chickpeas are expected to hit higher. The Ministry of Food and Consumer Affairs data indicates that chana dal and masoor dal trade at reasonable prices. However, other pulses, like moong, masoor, and sugar, are priced higher and are expected to remain in this range for the foreseeable future.
Production Challenges and Market Impact
In the second advance estimate released by the Central Government, the gram production is estimated at 12.161 million tonnes, slightly lower than the previous year. However, pulse farmers and traders anticipate even lower production due to unfavorable weather conditions. It will particularly impact Karnataka, Maharashtra, and Madhya Pradesh. Unseasonal rain and hailstorms have damaged crops, affecting over 74,000 hectares of Rabi crops in Maharashtra alone. Traders in Gulbarga, Karnataka, report a 30% decline in yields due to fungal diseases, with similar issues reported in Madhya Pradesh. The situation has led to uncertainty, with most farmers in Latur, Indore, and Akola waiting to bring their crops to the market, expecting prices to rise beyond the minimum support price.
Market Projections and Government Response
With the anticipation of lower yields, chana dal prices are expected to rise, potentially aligning with the price range of other pulses. However, the government’s ability to intervene in the gram market remains limited, leaving room for further price increases. Traders estimate a significant reduction in gram crop production nationwide, foreseeing increased prices. In Delhi, gram prices are projected to rise, reflecting the market’s volatility and the challenges farmers and traders face.
In conclusion, the pulse market is poised for price increases, particularly chickpeas. Despite reasonable prices for chana dal and masoor dal, other pulses like moong and masoor remain higher. Production challenges, including adverse weather conditions, threaten gram yields, especially in Karnataka, Maharashtra, and Madhya Pradesh. Damage from unseasonal rain and hailstorms has affected over 74,000 hectares of Rabi crops in Maharashtra alone. With limited government intervention, traders anticipate significant reductions in gram crop production, driving prices higher nationwide, including in Delhi.