Procurement Target
Chana procurement gathers pace but may still miss govt's lowered target
This story was originally published at 14:50 IST on 15 May 2025
Register to read our real-time news.Informist, Thursday, May 15, 2025
By Pallavi Singhal
NEW DELHI – Though procurement of chana, or chickpea, has picked up pace in the past week, it is likely to fall short of meeting the government's requirement, according to market and government sources. The government, as of Monday, had been able to procure about 180,000 tonnes of chana, doubling the quantity that had been procured as of May 5, according to data shared by a senior government official. Yet, this is a fraction of the 2.80 million tonnes that was sanctioned for procurement by the government.
The consumer affairs ministry has been keen to rebuild its buffer of the key legume. The stock was depleted after the government failed to procure any of last season's output owing to lower production and high demand. "Seeing the current price trend, our department internally revised the procurement aim down to 1.00-1.50 million tonne. But even that looks like a distant dream right now," another official said.
Chana prices have been hovering above the minimum support price of INR 5,650 per 100 kg in most markets. Wednesday, chana prices in Delhi were at INR 5,850-INR 5,875 per 100 kg, and at INR 6,100 per 100 kg in Indore, Madhya Pradesh.
The Centre's decision to try to procure chana from Gujarat and Rajasthan, where prices were slightly below the minimum support price, have not worked, the officials said. "We were able to procure some quantity from these markets last week," said the first official. "But soon after we entered the market, chana prices rose in Rajasthan. While prices did not rise in Gujarat, the state has a 'shorter' (smaller) crop which is not enough for us to fill our coffers." According to the official, the government will not be able to procure more than 300,000 tonnes of chana from Gujarat.
The high procurement target of 2.80 million tonnes was sanctioned on account of a robust crop outlook, as the government looked to replenish its stock. The agriculture ministry's second advance estimate has pegged chana production at 11.50 million tonnes, up from 11.03 million tonnes last year. The market, however, believes the government's estimate is overstated.
"High prices are an indication that production is low," said Satish Upadhyay, secretary of the India Pulses and Grains Association. "There are lower arrivals across country and significantly higher demand that is pushing up prices. Chana crop is short in states including Maharashtra, Karnataka, Madhya Pradesh, as well as Andhra Pradesh." End
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
