Chickpea Market Trends
Chickpea prices have surpassed the government’s minimum support price (MSP), bringing optimism to farmers. Maharashtra follows Madhya Pradesh as India’s leading chickpea producer. Farmers are experiencing joy as market prices exceed the MSP. The MSP was established at $65,28 per quintal for the fiscal year 2024-25. However, current market rates vary between $69,60 and $72 per quintal. With chickpeas making up 40 percent of pulse crops, they dominate over other pulses. Encouraged by these prices, farmers may increase chickpea cultivation.
Why Prices Are Rising
Many wonder why chickpea prices exceeded the MSP this year. Reduced sowing areas in Rajasthan, Karnataka, and Gujarat are key reasons. This has led to a decrease in the cultivation area to 102.90 lakh hectares from 109.73 lakh hectares. Consequently, chickpea prices have experienced a minor uplift. This shift benefits farmers, contrasting with last year’s unfavorable market conditions. Given the reduced cultivation areas, prices are likely not to dip below the MSP. India, being a significant pulse importer, encourages chickpea cultivation. NAFED has been procuring chickpeas directly from farmers for years. The MSP for chickpeas was increased by $1,26 this year.
Economic Impact on Farmers
The government estimates chickpea production costs at $40,80 per quintal. Meanwhile, the MSP is set at $65,28 per quintal, offering farmers a 60% margin over their costs. Compared to the 2014-15 MSP of $37,20 per quintal, this is a significant uplift.
Pulse Import Trends
Between January and March, pulse imports fell by 29 percent amid complex international supply dynamics. This decline brought imports down to 5,16,223 tonnes, from 7,24,883 tonnes the previous year. Exporters are withholding stocks, anticipating increased demand and higher prices in India.
Government Initiatives to Stabilize Prices
To mitigate chickpea price increases, the government initiated retail sales of Bharat brand pulses and permitted duty-free imports of yellow peas. These measures significantly stabilized Toor prices, shifting consumer preference towards chickpea dal. Since January, Toor imports have been reduced to less than half of last year’s figures. The government’s domestic production estimate for Toor is significantly lower than the total potential consumption, necessitating imports from Myanmar, Mozambique, and Malawi.