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Chana Procurement Increases, Yet Prices Remain Below MSP

The procurement of gramme (chana) under the price support scheme for the rabi 2022-23 season is currently picking up speed. As of Thursday, total acquisitions were close to 8.5 lakh tonnes. According to Nafed data, the total value of chana procured thus far at the minimum support price of 5,335 per quintal is 4,534 crore.

Shivam Dwivedi
Chana Procurement Increases, Yet Prices Remain Below MSP
Chana Procurement Increases, Yet Prices Remain Below MSP

Government agencies are currently conducting procurement in eight states. Maharashtra is the most important state for obtaining chana. As of April 13, total Maharashtra purchases exceeded 3.81 lakh tonnes (lt). 

The total cost of the chana purchased from Maharashtra is approximately Rs. 2,033 crore. Gujarat purchases total above 1.74 lt and exceed 933 crore.

The procurement from Madhya Pradesh, the largest producer of pulses, is 1.34 lt valued at Rs 718 crore. Similarly, Karnataka procured 57,161 tonnes worth 304 crore, followed by Telangana with 50,238 tonnes worth 268 crore. Andhra Pradesh purchased 49,477 tonnes of chana worth 263 crore.

In Rajasthan, government agencies purchased 1,862 tonnes worth $9.94 crore, while in Uttar Pradesh, government agencies purchased 376 tonnes worth $2.01 crore.

When compared to other states, the procurement rate in Rajasthan and Uttar Pradesh is quite slow. According to Nafed, the chana procurement procedure has benefited approximately 4.34 lakh farmers across the country so far. According to the Ministry of Agriculture's second advance estimate, gramme output for 2022-23 will be 136.32 lt, above the objective of 135 lt. Gramme production totaled 135.44 lt last year. According to trade sources, the government's output forecasts are on the high side.

According to Rahul Chauhan of IGrain India, while the commencement of procurement in states such as Maharashtra and Telangana initially supported prices, high arrivals in recent days in important producing states such as Madhya Pradesh and Rajasthan have put pressure on pricing. As a result, chana maintains its dominance below the MSP.

On Thursday, the modal price (rates at which most trades occur) of chana across several mandis in MP ranged from 4,400-4,800, according to Agmarknet statistics. A similar pattern was noticed in Rajasthan's numerous mandis. The prior year's government stock is expected to be roughly 14 lt. "Given this year's production, the trend in market arrivals, and the procurement window for about three months beginning April 1 in MP, Rajasthan, and Uttar Pradesh, total purchases this year could exceed last year's 25.2 lt," Chauhan added.

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