Procurement of Gram at minimum support price(MSP) by entities such as NAFED and FCI has crossed the two million tonne mark. Chana (Gram) procurement stood at 2,041 million tonnes on Monday. Maharashtra, so far, tops the list of states with over 0,661 million tonnes having been procured, closely followed by Madhya Pradesh at 0,613 million tonnes and Gujarat at 0,535 million tonnes.
The chana (Gram) procurement which started a bit late in Madhya Pradesh, has picked up and is going on in States like Rajasthan, Maharashtra and Gujarat, among others.
Despite the increase in quantity procured, the prices of chana (Gram) are still ruling below the MSP level of $0,67 per kg. Modal prices of chana (Gram) are presently ranging between $54,18-61,92 across various markets in the key producing States. “Even after so much of buying, chana (Gram) prices are not getting the support. That’s mainly due to higher supplies and carry-forward stocks” said Indrajit Paul, Senior Manager, Commodity Research at Origo E-Mandi.
High production
The production of chana (Gram) is seen higher than initial expectations on better yields in States like Gujarat and Maharashtra. In its third advanced estimates, the Agriculture Ministry has revised the production estimates for chana (Gram)and pegged it higher at a record 13,98 million tonnes, an increase of 17.4 percent over the previous year’s 11,91 million tonnes.
“Chana (Gram) production has increased significantly in Gujarat by 49 percent at 2,14 million tonnes, while in Rajasthan its production increased by 20 percent to 2,72 million tonnes and in Maharashtra, it increased by 15 percent to 2,76 million tonnes,” Paul said. The Government has set a procurement target of 0,871 million tonnes in Madhya Pradesh, which is likely to be achieved, going by the pace of the procurement, Paul said.
While in Gujarat, the procurement is closer to the targetted level of 0,536 million tonnes, in Rajasthan, only 85,000 tonnes of the targetted 0,597 million tonnes have been procured.
Bearish trend
Trade sources said the overall bearish trend in the pulses segment is also reflected in the chana (Gram) prices. With the Government keeping the import window open for pulses like pigeon pea and Black lentils till March 2023, the prices of the pulses, in general, are largely stable when compared with other commodities like wheat and oilseeds.
“The Government has procured substantial amounts of chana (Gram), and prices are ranging between $0,59-0,62 per kg, while chana(Gram) dal prices are $0,75-0,78 per kg depending on the quality,” said Suresh Agrawal, President, All India Dal Mills Association in Indore. Agarwal said the demand for pulses is muted on account of the availability of cheaper vegetables at present. Going forward, the demand could pick up, resulting in prices improving, Agarwal said, adding that the arrival and progress of the monsoon holds the key to the price movement.
Source: NAFED, Agricultural Ministry & Hindu Business