PUNE: Chana has now become the cheapest among pulses as prices have crashed below the minimum support price (MSP) due to a bumper crop and imports. Farmers are getting prices 10-15 per cent below the MSP of Rs 3,100 per quintal.
Opening up of exports and procurement by government at MSP are being demanded so that farmers do not shift to profitable crops next year. Chana prices are ruling below the MSP in major markets such as Indore, Latur and Akola.
Against the MSP of Rs 31 per kg, farmers are getting as low as Rs 25 per kg. Prices on the National Commodity and Derivatives Exchange (NCDEX) are also trading below the MSP.
The contract for April delivery traded at Rs 3,018 per quintal on Monday, 2.6 per cent below the MSP. India is expecting to break its earlier record of pulses production because area under chana has increased, especially due to the last year's drought in peninsular India.
MG Gunjakar, secretary, Latur APMC, said, "Prices are ruling below the MSP because the area has increased substantially. Due to the drought in the state over the previous year, a large number of cane farmers in Marathwada region shifted to soybean, a short-duration crop. They planted chana, a rain-fed crop, as the second crop after harvesting soybean."
Traders and processors are worried about farmers shifting from chana in the next year due to the low prices.
Nitin Kalantry, one of the largest processor of pulses from Latur, said, "Unless farmers get a good price, there is a possibility of they shifting to other crops like soybean next year. The government should allow exports and open up procurement centres to support the prices."
Other factors responsible for lower prices are imports as well as the growing acceptability of yellow peas imported from Canada. Earlier, yellow peas were used for mixing with chana flour (besan).
"Now, there is a market for besan made only from the yellow peas. Prices of imported yellow peas and chana are almost equal today," said a trader from Maharashtra.
Source : economictimes.indiatimes.com