Pulses rates go below MSP

Nagpur: Rates of one more crop have gone below the minimum support price (MSP) level this year. After sluggish rates of cotton, the main crop of Vidarbha, left farmers here disappointed, prices of tur have also slid.
Since beginning of harvest season in January, rates of tur, which is grown alongside cotton in the region, could only get close to the new MSP set at Rs 5,675 a quintal. In last two days of trading sessions, the rates have further slid by Rs 300. The current market rates are in the range of Rs 4,600 to Rs 5,300 a quintal.

This coincides with a major fall in the prices of chana (gram), which has just begun reaching the market. As against a MSP of Rs 4,600 a quintal, chana is being sold in the open market for Rs 3,800 to Rs 3,600 a quintal. Chana is a Rabi crop, which is harvested in February-March.

The rates are down despite the production being lower as compared to the previous year. Normally, lower production is expected to keep the prices up, say traders.

Traders say its March and liquidity is down in the market, which has impacted the price. The rates may improve in a couple of months but more or less stay range bound say traders. The farmers are likely to have offloaded much of their stock by that time.

Sudhir Kothari, a director in agriculture produce marketing committee (APMC), at Higanghat in Wardha district said the maximum a farmer is getting for tur is Rs5,300 a quintal. On an average the it is Rs4,800 to Rs4,900. Its worse for Chana which is at Rs 3,600 as against a MSP of Rs 4,600 a quintal.

Even as government procurement through NAFED has begun, farmers are preferring to sell for a lower price to private farmers. This is because of the delayed process of payment, said Kothari.

“The procurement by NAFED is done through local procurement cooperatives. Many cooperatives are not taking part in the MSP purchases alleging that they have not received the commission payable from NAFED for last year’s purchases,” said Kishore Tiwari the chairman of Vasantrao Naik shetkari Swavalamban Mission (VNSSM), a state government agency.

Due to the citation farmers have resorted to distress sale, he said.

However, Sanjeev Kumar Chaddha, the managing director of NAFED replied to a TOI SMS saying that there were no dues from its side.

Pratap Motwani the secretary of Itwari Grain and Seeds Merchants Association, said the crop of both tur and chana has gone down by 20% as compared to the last year. Yet the rates are down. Normally a fall in supply is expected to increase the price.