As pulses prices plunge, Maharashtra starts procurement at minimum support price

With prices of moong dal falling below the minimum support price (MSP), the Maharashtra government has directed NAFED to start procurement of pulses at the MSP from farmers from Thursday.

Maharashtra minister for cooperation and marketing Subhash Deshmukh told FE the procurement operations would continue until the farmers get relief.

Now that the new kharif crop of moong has started arriving in mandis, prices have fallen below the MSP. Deshmukh said that the procurement operations will continue until the prices come up to the MSP level. The MSP of green moong is around R5,225 per quintal and prices have fallen to around R3,500 per quintal.

Admitting that there is a huge price difference between wholesale and retail prices, the minister said that corrective measures are being planned phase-wise to bring down prices at the retail level for the common consumer. Ram Vilas Paswan, Union agriculture minister, has directed agencies to step in and begin procurement operations since prices have fallen below the MSP.

Prices of pulses have fallen by around 50-60% in all the major wholesale markets in Maharashtra over the last few days. Two consecutive years of drought had led to the peaking of prices of pulses and a shortage in the country, causing the government to encourage import. Nanasaheb Patil, director, NAFED, said that procurement operations were part of regular procedure when prices of pulses fall below MSP for Nafed and there are no targets set for the procurement. Purchase operations will continue until there is a price correction in the market.

Govt Steps In

With prices of moong dal falling below the MSP, the Maharashtra government has directed NAFED to start procurement of pulses at MSP from farmers from Thursday

Maharashtra’s minister for cooperation and marketing said the procurement operations would continue until the farmers get relief

Prices of pulses have fallen by around 50-60% in all the major wholesale markets in the state over the last few days

Bimal Kothari, vice president, Indian Pulses and Grains Association (IPGA), welcomed the move by the Centre. Prices have fallen by nearly 30-40% across the board and some pulses such as green moong are selling below the MSP where the new crop has come in places such as Karnataka, he said. The new crop will hit markets in Maharashtra and Rajasthan as well.

In view of the situation, the association has urged the government to procure the commodity at the MSP, for which the government has already given directives, he said. This move will stablise prices and farmers will not be required to sell below the MSP, which will encourage them to continue to grow the crop the next season as well, Kothari said.

The association anticipates a bumper crop in urad dal, which will begin arriving in October and tur dal which will hit markets in November, and therefore the government should begin procurement for these crops as well, he said.