Uncertainty in Pulses Markets: Government Takes Serious Steps on Procurement Policy
22-Jan-2025 06:24 PM
Uncertainty in Pulses Markets: Government Takes Serious Steps on Procurement Policy
Key Highlights:
1. Previous Season Scenario
- Due to higher-than-MSP prices of lentils such as masoor, moong, chana, urad, and tur, the government did not procure in significant quantities.
- Total pulses procurement during the last Rabi season stood at 6.41 lakh tons, including:
- Masoor: 2.49 lakh tons
- Chana: 43,000 tons
- Moong: 3.48 lakh tons
- This led to a significant depletion of the country's pulses buffer stock.
2. Current Situation
- The buffer stock of masoor and moong is below normal, while stocks of other pulses are almost negligible.
- To address this, the government has increased MSP to encourage procurement.
3. Kharif Pulses Procurement
- Procurement of urad, moong, and tur is currently underway.
- The government has assured that it is ready to procure 100% of the urad, masoor, and tur crops.
- The Karnataka government has announced a bonus of ₹450 per quintal for tur, bringing the effective price to ₹8,000 per quintal.
- However, Maharashtra, a key producer, has not set any procurement target yet.
4. New Procurement Plan
- The government has announced that if prices exceed MSP or other challenges arise, procurement will be conducted based on the average mandi price of the past three days.
- This procurement will be carried out under the MAPP (Minimum Assurance Procurement Prices) scheme.
5. MSP of Pulses (₹/Quintal):
-Tur: 7,550 (₹ 8,000 in Karnataka)
- Moong: 8,682
-Urad: 7,400
-Chana: 5,650
-Masoor: 6,700
6. Kharif Procurement Data (as of January 14):
- Moong: 1.67 lakh tons
- Urad: 31.25 tons
- Tur: 0
Analysis:
- Moong farmers are bringing limited stock to procurement centers.
- Urad procurement has been low due to market prices being higher than MSP.
- Tur farmers are reluctant to sell at current low prices.
7. Key Challenges:
- Farmers are hesitant to sell tur after two years of high prices.
- Despite good production, arrivals in mandis are slow, particularly in Vidarbha.
8. Current Market Dynamics:
- Both imported and domestic production have increased, ensuring sufficient availability of pulses.
- Farmers are unwilling to sell at lower prices.
- The government is actively procuring to support farmers.
- Millers are facing challenges in sourcing adequate stock.
- Exporters and stockists, who purchased at higher prices, are hesitant to sell.
- Despite low prices, market buying remains weak.
Conclusion:
The current situation in the pulses market is marked by a delicate balance between production, imports, and government procurement. Flexible policies and efforts to stabilize the market are crucial to bridging the gap between farmers and government procurement objectives.