High Market Prices Hit Government Gram Procurement, Tur Purchase Sees Growth

25-Apr-2025 01:02 PM

New Delhi, April 2025 – Government procurement of Desi gram (chana) has remained significantly low this season as market prices continue to hover above the Minimum Support Price (MSP). The MSP for gram in 2024–25 has been fixed at ₹5,650 per quintal, an increase of ₹210 from last year. However, wholesale market prices are currently around ₹6,000 per quintal, prompting farmers to sell in open markets instead of government centers.

As a result, government agencies have been able to procure only 24,000 tonnes of gram, which is less than 1% of the 28 lakh tonnes approved for procurement by the Union Agriculture Ministry. Despite a drop from earlier peak prices, the current market rates still exceed the MSP, leaving government agencies with limited scope to intervene under the Price Support Scheme (PSS), which restricts purchases to MSP rates only.

Analysts suggest that to bolster the low government stock of gram, the government might need to either wait for market prices to fall or activate the Price Stabilization Fund (PSF) to allow procurement above MSP.

Tur Procurement Progresses Well

In contrast, government procurement of tur (arhar) has shown positive momentum. The Ministry of Agriculture has sanctioned procurement of 13.22 lakh tonnes of tur for the 2024–25 season. As of April 22, a total of 3.92 lakh tonnes had already been procured.

Tur procurement is being carried out in nine states, including Maharashtra, Karnataka, Andhra Pradesh, Telangana, and Gujarat. The purchase window in Andhra Pradesh, originally set to close on April 22, has been extended to May 22, 2025, to allow more farmers to sell their produce at MSP.

The government has assured that 100% procurement of tur will be carried out at the MSP of ₹7,550 per quintal.