Centre planning to procure 1 million tonne of chana dal at market price

The Centre is planning to purchase one million metric tonnes (mt) of chickpea (chana) under the price stabilisation fund (PSF) at prevailing market rates or potentially higher, to replenish its stockpile, according to a report in Mint.

Amid a shortage in pulse stocks, the government has been unable to procure the required quantities.

Chickpea prices in major producing states’ wholesale markets have surged substantially, currently ranging between Rs 6,900 and Rs 7,075 per quintal, significantly surpassing the minimum support price of Rs 5,440 per quintal, the news report said.

As per data by the Ministry of Consumer Affairs, Food and Public Distribution, the retail price of chickpeas has risen by 16.6 per cent this year compared to the previous year, reaching nearly Rs 87 per km.

The report quoted an official as saying, “Procurement of chana under PSF has already been started by our two agencies (NAFED and NCCF) last month at the prevailing market rate. The procurement will be of current rabi season’s crop and from farmers, PACs (primary agricultural credit societies), cooperatives, FPOs (farmer producer organisations), FPCs (farmer producer companies), millers and private players at MAPP (minimum assured procurement price) which will be available in the Agmarknet and UPAG portals daily. In case MAPP is not possible, we have directed the procuring agencies to purchase the crop at 10 per cent higher than MAPP.” The official added that the estimated cost of the operation would be around Rs 600 crore.

Less rainfall

Due to insufficient rainfall and an extended dry period last year, chana prices shot up in anticipation of lower production this year. In response, the agriculture ministry revised its estimates downward on Tuesday to 11.57 million tonnes from the initial February estimate of 12.1 million tonnes. Last year, the estimated production of 12.26 million tonnes was recorded in India. The government is expected to release its final estimates in October, the report said.

Inadequate buffer

So far, the Centre has managed to procure around 300,000 tonnes of chickpeas, which falls short of one-third of the required buffer. Currently, the central pool holds only 1.6 million tonnes of pulses, with 340,000 tonnes of chickpeas, compared to the standard requirement of 3.1 million tonnes, the report stated.

Duty-free imports

To address the shortfall in pulse supply, particularly chickpeas due to reduced tur (pigeon pea) production, the government permitted duty-free imports of yellow peas until March 2024, with later extensions until October. Pulse retail inflation decreased to 16.8 per cent in April from 17.8 per cent in March, yet it remained a significant factor in elevated food inflation, which rose to 8.7 per cent last month from 8.5 per cent a month ago, and 3.8 per cent a year earlier.