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Informist, Monday, Nov. 18, 2024

 

By Pallavi Singhal

 

NEW DELHI – The government plans to procure around 1 million tonnes of chana directly from farmers starting April to boost stocks and stabilise market prices, according to two senior government officials. 

 

"The procurement will be done at the prevailing market prices under the Price Stabilisation Fund if prices do not come down to the minimum support price levels," the first official said. The government, as per the officials, is currently holding negligible stocks of the commodity as it allocated everything it had towards the Bharat Dal scheme.

 

The government's decision to procure chana directly from farmers comes in response to a severe shortage of reserve stocks this year, resulting from their inability to procure adequate quantities during the previous season. This shortage left them powerless to intervene in the retail markets, despite soaring prices, exacerbating the situation. 

 

The government will undertake procurement through the National Agricultural Cooperative Marketing Federation of India Ltd. and the National Cooperative Consumers' Federation of India Ltd., which will procure the commodity directly from farmers for the Ministry of Consumer Affairs, Food, and Public Distribution, to be offloaded when prices of this essential commodity rise. The procurement of the seed is crucial, with zero buffer stocks available with the government currently. 

 

"As per norms, the government must have at least 1 million tonnes of chana in its buffer stock to be able to intervene when required. We came to the market to procure the same last season as well, but prices rose after we stepped in, and we could not procure anything, there was a shortage in the market. With outlook looking better this year, we will attempt to replenish our stocks this season," the second official said. 

 

Chana production fell 10% on year to 11.04 million tonnes in crop year 2023-24 (Jul-Jun), but is likely to see an uptick, both government and traders believe. Despite delayed sowing due to untimely rains, traders see acreage rising by anywhere from 5-10% this year, on higher realisation and good monsoon. India consumes about 10 million tonnes to 11 million tonnes of chana annually.

 

The outlook for procurement is also looking positive as chana prices continue to fall, having fallen 11% in the past two months on ample imports of cheaper chana as well as yellow peas to about 7,000 per 100 kg in wholesale markets. According to traders, almost 2.50 million tonnes of yellow peas have been imported so far in 2024-25 (Jan-Dec). They see the number rising to 3 million tonnes by the end of December. Yellow peas are a cheaper alternative to chana, used for making besan. Meanwhile, the sales of Bharat Dal are also bringing chana prices under pressure as consumers prefer the cheaper option. 

 

Meanwhile, traders estimate that chana imports, which are currently duty free until March 31, 2025, may continue to enjoy zero duty in the next financial year as well if sowing levels remain lower than the previous year, helping bring prices down.   End

 

Edited by Deepshikha Bhardwaj

 

 

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