Chana prices fall below MSP in Maharashtra

Chana (gram) prices have slid 4%-6% in the past three weeks, plunging below the minimum support price level (MSP) in Maharashtra after the state government included chana along with tur and urad in the stock declaration order. This has increased worries of farmers as the government buying at MSP is limited.

The average wholesale price of chana at Latur APMC (Agricultural Produce Market Committee), one of the largest growing and processing centre for chana, on Wednesday was Rs 4670/quintal, down 12.5% from the MSP of Rs 5335/quintal. The MSP of chana for 2023-24 is Rs 5335 per quintal, up by 2% from the previous year.

The central government started taking measures to tame speculation in prices of tur and chana after it became clear that the production of tur was going to be short by 10 lakh tonnes.

“As chana prices are ruling way below MSP, there is no need to monitor chana stocks,” said Rupesh Rathi, a pulses processor from Akola in Maharashtra.

However, pulses processors pointed out that when the central government lifted its stock limit order on October 31, 2021, it had clarified that the monitoring through web portal was going to continue.

“It is the overall atmosphere of fear, which has reduced the trading volume resulting in fall of chana prices,” said a processor, who requested not to be identified. National Agricultural Cooperative Marketing Federation (Nafed) is the nodal agency for chana procurement in the country.

Subdued market prices of chana coupled with closure of Nafed’s procurement centres in some districts of Maharashtra has led to farmers’ protests.”However, the market prices are not subdued due to Nafed’s procurement, which is going to be higher than the previous year. It is the uncertainties related to government policies and higher stock with the government,” said a source with a procurement agency.

So far, Nafed has procured 13.76 lakh tonnes of chana in the country, of which 5.48 lakh tonnes has been procured from Maharashtra and 3.76 lakh tonnes from Madhya Pradesh.