Possibility of imposing storage limit on gram due to high prices

28-May-2024 11:25 AM

New Delhi . Despite being the peak season of supply, the central government, worried about the slowing down of arrivals in the important markets of major producing states and the creation of an environment of bullishness in prices, may now consider imposing a stock limit on desi gram.

The wholesale market price of gram is about 35 percent higher than the minimum support price set by the government (Rs 5440 per quintal).

The supply of gram has remained low due to decline in domestic production and withholding of stocks by farmers.

It should be noted that the contribution of gram in the total production of pulses in the country is around 50 percent.

The government has already allowed duty free import of desi gram but it is not having any psychological impact on the domestic market.

The stock of gram with the Central Government is less and this time government procurement has also been very less. 

In major producing states like Madhya Pradesh and Rajasthan, the price of gram has increased to the peak level of Rs 7200-7300 per quintal, while it is not likely to soften much in the near future.

For the first time in recent years, the price of gram has jumped above Rs 7000 per quintal. According to the Union Agriculture Ministry, the production of gram has come down to 121.60 lakh tonnes this time, whereas the industry-trade sector believes that the actual production has been less than 100 lakh tonnes. The harvesting preparations have already been completed.

According to an analyst, the price of gram has increased by about 13 percent in various markets so far during the current month because there is a difference between its demand and supply.

The demand for gram remains strong but the arrival is decreasing. NAFED has been asked to purchase gram at pre-determined price in Madhya Pradesh, Rajasthan and Maharashtra.

If the situation worsens, the government may think about stock limit.