New Delhi: The Centre plans to purchase one million tonnes (mt) of chana (gram) under its price stabilization fund (PSF) at market prices or higher to replenish its buffer, a senior official said.
Pulse stocks are dwindling, and the government has struggled to procure the desired quantities due to high prices.
Chana prices in the wholesale markets of key producing states have surged significantly, ranging from ₹6,900 to ₹7,075 per quintal, well above the minimum support price of ₹5,440 per quintal, according to spot traders.
This increase has driven the retail price of chana up by 16.6% compared to the previous year, reaching nearly ₹87 per kg as of Wednesday, data from the consumer affairs ministry showed.
“Procurement of chana under the PSF began last month by our two agencies, NAFED and NCCF, at the prevailing market rate. This procurement involves the current rabi season’s crop from farmers, PACs (primary agricultural credit societies), cooperatives, FPOs (farmer producer organizations), FPCs (farmer producer companies), millers, and private players at the MAPP (minimum assured procurement price) listed daily on the Agmarknet and UPAG portals. If MAPP is not feasible, we have directed the agencies to purchase the crop at 10% above MAPP,” the official said.
“We estimate the operation’s cost to be about ₹600 crore, and we have already paid this amount in advance to both agencies to procure one million tonnes of chana,” the official added.
The government has managed to purchase around 300,000 tonnes of chana so far, less than a third of the buffer requirement. Overall, only 1.6 mt of pulses are available in the central pool, including 340,000 tonnes of chana, against the norm of 3.1 mt.
Chana prices began rising due to anticipated lower production this year caused by low rainfall and a prolonged dry spell last year. The agriculture ministry acknowledged this and revised its estimates downwards on Tuesday to 11.57 mt from the February estimate of 12.1 mt. Last year, the country produced an estimated 12.26 mt. The government will release its final estimates in October.
