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Informist, Thursday, Jun. 19, 2025

 

 

--Govt source: Will extend chana procurement for 2nd time till mid-July 

--CONTEXT: Govt's procurement of chana was to end by Jun 30 

--Govt source says 400,000-tonne chana buys realistic target, can impact mkt

--Govt source: Current chana procurement at 310,000 tonnes

--Govt source: Madhya Pradesh chana procurement closed at 99,000 tonnes

--Govt source: Chana buys from Rajasthan, Maharashtra, Gujarat to continue

 

By Pallavi Singhal

 

NEW DELHI – The government has decided to extend the chana procurement window to mid-July, as purchases have been lagging behind the internally-revised targets, according to a senior government official. This will be the second time the government will extend the sanctioned period for procurement. Earlier, chana procurement was extended till Jun. 30 from its initial deadline of May 31.

 

The government had sanctioned a high procurement quantum of 2.8 million tonnes of chana on account of a robust crop outlook, as it looked to replenish its stocks. But after struggling to procure, the target was revised downward to 1.0-1.5 million tonnes and then to 400,000-500,000 tonnes.

 

"We are confident of procuring at least 350,000 tonnes of chana, with 400,000 tonnes being a realistic target. However, our aim is to reach 500,000 tonnes, although that might be ambitious," the official said. With procurement window closing in one of the key states of Madhya Pradesh, the government is looking to ramp up buys from Rajasthan, Maharashtra and Gujarat. 

 

So far, the government has procured over 310,000 tonnes of chana. Gujarat has contributed the most at over 150,000 tonnes, followed by Madhya Pradesh at 99,000 tonnes, and Rajasthan at 50,000 tonnes. Maharashtra has so far contributed only about 3,000 tonnes to the central buffer. 

 

The government is banking on the monsoon rains to help fill its kitty. "We expect disposals to rise as heavy rains lash the country. We are hoping this will encourage farmers to dispose off their stocks as storage becomes an issue during this time," the official said. 

 

The government had also hoped that chana procurement would increase after it extended the waiver on import duty of yellow peas till Mar. 31, Informist had earlier exclusively reported. Yellow pea is often used as a substitute for chana in food products to reduce production costs.

 

Despite lower procurement of chana, the government believes its intervention can influence the market amid ample availability of yellow peas. Additionally, the official stated that a 10% import duty on chana won't significantly impact imports.

 

Chana is currently being procured under the central government's Price Support Scheme, designed to protect farmers from price fluctuations by providing a minimum support price for their produce. Chana is currently being procured at INR 5,650 per 100 kg minimum support price. The government is unlikely to use the Price Stabilisation Fund, via which it can procure the commodity at prevailing market prices, on account of low inflation.

 

India's consumer price index inflation for pulses and products for May fell to (-)8.22% from a whopping 16.84% a year ago. Imports of key legumes including tur, urad, and yellow peas remain duty-free till the end of 2025-26 (Apr-Mar). While chana imports attract a 10% duty, imports of masur face 11% duty.

 

Wholesale prices of chana have been hovering slightly above MSP. Prices of chana in Delhi have been steady at INR 5,750 per 100 kg, but may rise in the first week of July once the southwest monsoon begins in full swing, according to local traders.  End

 

Edited by Vandana Hingorani

 

 

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