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Informist, Thursday, Mar. 20, 2025

 

By Pallavi Singhal

 

NEW DELHI – The Centre is likely to approve the procurement of an additional 546,000 tonnes of chana from Rajasthan, on top of the already sanctioned 2.16 million tonnes for crop year 2024-25 (Jul-Jun), as it looks to replenish its depleted buffer stocks, a senior government official told Informist. "A proposal from the state on the same is already in and we will approve it soon," the official said.

 

The chana will be procured directly from farmers under the price support scheme for the 2024-25 marketing season on account of a robust crop outlook. According to the agriculture ministry's second advance estimates, production of both tur and chana - two major pulse crops of India, is looking up. While tur production is expected to rise about 6% on year to 3.5 million tonnes in the 2024-25 crop year, chana output is pegged at 11.5 million tonnes, up from 11.03 million tonnes last year. 

 

The increase in procurement becomes crucial to stabilise chana prices, which have remained below minimum support price over the last few weeks. Prices fell due to a surge in domestic supply from new crop arrivals and ongoing imports, which are set to continue until the end of March. As of Wednesday, chana prices in the key market of Kota, Rajasthan, were trading at INR 5,300-INR 5,600 per 100 kg, below the government's minimum support price of INR 5,650 per 100 kg.

 

"This is an exemplary step being taken by the government to support farmers at a time when prices of several agri-commodities are sliding due to robust production," the official said. "With our own buffer stocks falling to less than half of the norm, we have asked our procurement agencies—including National Agricultural Cooperative Marketing Federation of India Ltd., and the National Cooperative Consumers Federation to work with state governments and procure sanctioned amounts." 

 

However, the government will only procure if prices continue to remain under the minimum support price. "Intervention from the agriculture ministry can only come if prices remain below the assured minimum support prices. If they rise, we cannot sanction funds from the price support scheme. At such a time, the Department of Consumer Affairs can intervene and buy even at higher prices from the price stabilisation fund, to later sell it in open markets to cool down prices," the official explained. 

The agriculture ministry has sanctioned the purchase of 1.32 million tonnes of tur, 940,000 tonnes of masur, 90,000 tonnes of urad and 13,500 tonnes of moong for the ongoing crop season. Chana imports continue to be duty-free till Mar. 31, with a decision on any extension expected soon. An extension of duty-free imports are likely to keep prices of the commodity low, helping the government replenish its reserves, which saw a sharp decline over the last two years as prices of all pulses stayed well above the minimum support price due to lower production. 

 

The government had started selling Bharat Dal in July 2023 by converting the extra chana stock procured under the price stabilisation fund into dal for retail sale at a subsidised price. About 1.2 million tonnes of Bharat chana had been sold to retail consumers in the first phase. The second phase then allocated the remaining quantity of 300,000 tonnes of chana, sources had then told Informist. After chana stocks depleted, the government in October last year started selling moong and masur dal under the 'Bharat' brand.

 

According to the official, the government only has about 700,000 tonnes of moong and about 550,000 tonnes of masur in its buffer stock, against the requirement of maintaining 3.5 million tonnes.  End

 

Edited by Tanima Banerjee

 

 

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