NAFED is currently selling around 50,000 tonne of tur through e-auction from its buffer stock of around 0.15 MT.
With mandi prices of chana (gram), commonly consumer pulses, ruling above the the minimum support price (MSP) of Rs 5350/quintal for the first time in many years, the government is aiming to sell one million tonne (MT) of the variety in the open market from its buffer.
The aim is to bring down retail inflation of chana, which has a share of 50% in the country’s pulses production, in the coming months so that overall food inflation could be curbed.
Inflation in chana, was 1.72% in July on year while the prices were in the negative during January-May period this year.
The retail inflation in “pulses and products” category rose to 13.27% in July on year from 4.27% in January, 2023.
The farmers’ cooperative NAFED which had commenced selling chana in the open market since beginning of last month has sold more than 0.5 MT of pulses so far through daily electronic- auction from its buffer of 3.3 MT.
Trade sources said that the average prices in the open market sale has been Rs 15 – 25/quintal above MSP, which could push up the inflation in pulses further.
“The trading price of chana surpassing the MSP in various mandis or markets indicates a positive market sentiment and strong demand-supply dynamics,” Harsha Rai, head, Mayur Global Corporation, a leading firm in pulses trade told FE.
In addition to e-auction, the government is currently selling subsidised chana dal at Rs 60 per kg under a brand name ‘Bharat Dal’ to provide pulses at an affordable rate to consumers through NAFED outlets.
NAFED is currently selling around 50,000 tonne of tur through e-auction from its buffer stock of around 0.15 MT. However due to sluggish kharif sowing which has been lagging by around 5.3% at 4.02 million hectare till August 11 and patchy monsoon rains in the key growing regions of Karnataka and Maharashtra, tur prices are likely to remain elevated in the coming festive months.
Mandi prices of tur at Latur, Maharashtra, the hub of trade, where harvest from last year is still being sold was around Rs 104/kg on Thursday against the MSP of Rs 6600/quintal.
“Tur prices are likely to stay firm because of the lack of any private stock with traders,” a Latur based pulses trader said. The likely shortfall in output in current season and imports from the African countries only entering the market by September, is unlikely to bring down price, the trader said.
Retail inflation in tur in July, 2023 rose to 34.05% from 10.9% in January. The modal retail prices of tur on Thursday was Rs 140/kg, an increase of 17% of the price prevailed two month back
To curb hoarding and speculation amid rising prices, the government in May had imposed limits on the stocks of tur and urad dal till October 31. The import duty on tur, urad and masur has been abolished to improve domestic stocks.
Under the bilateral agreement signed in 2021, India has committed to import 0.25 MT urad and 0.1 MT tur annually from Myanmar between 2021-22 and 2025-26. Same year, India entered into a MoU with Malawi for the annual import of 0.05 MT tur till 2025.
Source:financialexpress.com