Nafed had purchased 2.3 MT and 2.6 MT of chana under PSS in the 2023-24 and 2022-23 seasons respectively which had given a boost to the buffer.
To ramp up stocks which has fallen below the buffer, the government is likely to buy chana (gram) directly from the farmers at market rate under price stabilisation fund (PSF) as mandi prices are higher than the minimum support price (MSP).
Trade sources said the market prices of chana (gram), a vital pulse variety which has share of close to 50% in the country’s output, are ruling in the range of Rs 5900/quintal – Rs 6000/quintal against the the MSP of Rs 5440/quintal for the 2024-25 season due to fear of decline in output.
“Through purchasing directly from the farmers at the market prices, we can boost the stock,” an official told FE. Under PSF, the government undertakes market intervention initiatives to check the volatility in the prices of agri-horticultural commodities to protect farmers as well as consumers.
At present, the farmer’s cooperative Nafed and state level agencies are unable to carry out MSP procurement operations under price support scheme (PSS) because of higher prices of chana. So far only 13,000 tonne of chana has been purchased by Nafed in the current marketing season (April-June) against the target of one million tonne (MT).
Nafed had purchased 2.3 MT and 2.6 MT of chana under PSS in the 2023-24 and 2022-23 seasons respectively which had given a boost to the buffer.
Officials said robust procurement last two marketing seasons which boosted buffer stock to 3 MT last year, had allowed the government to sell chana in the open market to bulk buyers and sell chana dal at Rs 60/kg through retails outlets through Bharat dal initiatie. Sources said that the buffer of chana has currently dipped to around 0.7 MT against a norm of one MT.
On Monday, the chana sport prices was Rs 5825/quintal at Bikaner, Rajasthan on commodity burse NCDEX spot prices.
“Chana prices have surged significantly in various mandis due to supply demand imbalance caused by decreased output,” Harsha Rai , head, Mayur Global Corporation, leading pulses trading firm, told FE.
According to the agriculture ministry estimate, chana production in the 2023-24 crop year (July-June) is estimated at 12.16 MT, marginally lower than previous year. However trade sources estimated the output of key pulses variety much below the official estimates.
The government last week extended duty-free import of yellow peas used as substitutes for chana till June 30. In December last year, the government allowed duty free import of yellow peas while an import duty of 50% was imposed on pulses variety in 2017 to encourage domestic production.
Source:financialexpress.com