In a twist of fate for gram cultivation, it is witnessed that sowing on 1.12 million hectares, a deficit of 0.215 million hectares compared to the previous year. With adverse weather conditions further dampening prospects, the government anticipates a 2.25 million -tonne drop in gram production, estimating it at 1.35 million tonnes. Trade estimates projected even lower figures, hovering around 1 million tonnes. Despite the government procuring about 2.25 million tonnes at the minimum support price of $0,64 per kg and NAFED holding 1.4 million tonnes of old stock, Gram continued to grapple with market pressure. Meanwhile, pulses like Black gram split, pigeon peas, and Moong experienced rapid uptrends in prices, resulting in limited availability in the market.
Business estimates indicate that central gram-producing states, including Rajasthan, Madhya Pradesh, Maharashtra, Karnataka, and Andhra Pradesh, could experience a 20-25 per cent reduction in production this year, plummeting to 7.5-8.5 million tonnes. The primary cause of this production downturn is the per-hectare yield drop across nearly all gram-producing states. To counter this, NAFED has been incrementally raising Gram’s selling prices since last month, with plans to sell 1.0 million tonnes in the open market through tender. Presently, tenders have been accepted at varying rates.
However, the impending G-20 conference will likely stagnate business activities during the current week. Nevertheless, improvements are expected if the market finds its stride again. Despite the government’s attempts to curb the price surge by selling Gram through tenders at rates higher than the minimum support price in producer markets, farmer arrivals have not seen a significant uptick. To address this surge, the government may resort to imports. Reports suggest that new desi gram from Tanzania has begun arriving at the Mumbai port, trading at $670-680 per tonne on a Cost and Freight basis. Due to soaring prices for other pulses like Black gram split, moong, and lentils, gram consumption will likely rise, further bolstering its strength.