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Informist, Thursday, Apr. 24, 2025

 

By Pallavi Singhal

 

NEW DELHI – The government has, so far, procured only 24,000 tonnes of chana, less than 1% of the total sanctioned amount of 2.8 million tonnes for rabi marketing season 2025-26 (Apr-Mar), a senior government official told Informist. This shortfall is attributed to high chana prices, which have consistently been above the minimum support price, discouraging farmers from selling to procurement agencies at the minimum support prices, the official said.

 

Chana prices in the key market of Indore, Madhya Pradesh, were INR 6,050-INR 6,100 per 100 kilogram on Wednesday, significantly above the MSP of INR 5,650 per 100 kg. Farmers are not willing to sell to the government as prices being offered in the spot markets by stockists are higher than the minimum support price, a local trader told Informist.

 

Chana procurement for the season started mid-March and is likely to go on till mid-June. However, this will largely depend on the arrivals of the crop. "As of now, prices are slightly above (the MSP) so nothing significant has been procured. If market prices fall, we will procure more and if prices remain stable at current rates, it is unlikely that we will be able to procure any significant amount," the official said. 

 

The procurement is part of the central government's Price Support Scheme, designed to protect farmers from price fluctuations by providing a minimum support price for their produce. It ensures farmers receive a guaranteed price, even if market prices fall below the MSP, by procuring specific crops at the MSP. 

 

"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 at even higher prices from the price stabilisation fund, to later sell it in open markets to cool down prices," the official said. The commodity is being procured through the two central nodal agencies, National Agricultural Cooperative Marketing Federation Ltd. and National Cooperative Consumers' Federation of India Ltd.

 

The high procurement number had been sanctioned on account of a robust crop outlook, as the government looked to replenish its depleted stocks. The agriculture ministry's second advance estimates peg production of chana at 11.5 million tonnes, up from 11.03 million tonnes last year. However, prices remain high on continued buying by stockists for use during festive seasons across the year.

 

The department of consumer affairs, according to the official, may step in as it aims to 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.  End

 

Edited by Akul Nishant Akhoury

 

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