MSP hike to make pulses costly

The prices of pulses is set to increase in the coming days following the Centre’s decision to hike the minimum support price (MSP) of moong, arhar (tur), urad, masoor and chana (gram). Earlier, pulses were being sold below the MSP. After the Government announcement, it is being sold at MSP. This means, consumers will have to shell out Rs 5-10 more for each kg of pulses they buy from the retail market.

Officials said the MSP hike was declared for foodgrain that would reach the market by December 2018-January 2019, and later. But taking advantage of the MSP, traders in wholesale market and forward trading have increased the price of pulses.

Market sources said that the price of moong lentil is expected to rise at Rs 10 -15 a kg followed by tur (Rs 3-5 a kg) in the retail market. Urad price may rise at Rs 5-10 a kg. Channa may also see rise up to Rs 5 to 7 a kg.

In the retail market, moong, arhar (tur), urad are being sold between Rs 70 and Rs 80 a kg depending on the quality and area while masoor dal is being sold from Rs 60 to 65 a kg.  Channa is being sold between Rs 45-50 a kg. 

The MSP of arhar has been increased from Rs 5,450 per quintal to Rs 5,675 per quintal while MSP of moong increased from Rs 5,575 to 6,975 per quintal. The MSP of urad has increased from Rs 5,400 to Rs 5,600 per quintal. The MSP of Masoor is increased from Rs 3,950 to 4250 per quintal while the MSP of Gram (Channa) is increased from Rs 4,000 to Rs 4,400 per quintal.

Expressing apprehensions of increase of pulses rate in the retail market, Delhi Dal Mill Association’s general secretary Deepak Kumar Goel said that pulses price is all set to be increased in the coming days.  “After the announcement of MSP and increase in the wholesale prices, there might be an approximately 20-25 percent increase in the retail prices,” Goel said.

“The commodities on which the minimum support price has been increased can’t be sold at rates lower than the MSP. This will benefit the farmers,” he added. According to Goel, pulses were being traded below the MSP till June and reports are coming that price of pulses at increased at par with MSP in the wholesale trading.

All India Dal Mills Association president Suresh Aggarwal claimed that pulses are being traded at wholesale market below the MSP.

A dal trader of Khali Bowli kirana market said that prices of several pulses have already started rising at the wholesale level because the stockiest have started taking advantage of the situation. “Pulse prices were on the lower side till June,” he added.

According to Agriculture Ministry’s advance estimate, pulses production is expected to be 23.95 million tonnes this year as compared to 23.10 million tonnes previous year. While gram output went up nearly by 2 million tonnes to 11.16 million tonnes, the production of arhar was estimated to have slumped by about 0.5 million tonnes to 4.18 million tonnes in 2017-18. The output of urad too was projected to be at a record 3.28 million tonnes — up from 2.83 million tonnes in 2016-17.