Lockdown, freebies push tur rates above MSP

Nagpur: For the first time after two years, rates of tur — the commonly grown pulses — have crossed the minimum support price (MSP) level. An MSP of Rs5,800 a quintal was set for the kharif season of 2019 and the rates in open market touched Rs6,000 a week ago.
It’s an impact of distribution of free tur dal through ration shops as part of the moves during the lockdown. In May and June, tur dal was distributed free of cost through ration shops to the poor. The stocks of raw tur were taken out of government godowns and handed over to millers for processing it into tur dal — the edible form. This led to a proportionate reduction in the overall availability of the pulses in the market, taking up its prices. Imports getting slowed due to the Covid-induced lockdown has also contributed to the increase in rates, said traders.
Over a week ago, the rates of best quality tur crossed the MSP and touched Rs6,000. The rates have now settled in the range of Rs5,900 to Rs6,000 a quintal, say traders. However, this comes at a time when farmers in the region have cleared most of their produce, with only 10% of the last kharif season’s produce estimated to be left with the growers, say trade sources.
The MSP procurement by the government also remained slow this year, said farmers.
This has made its impact in the retail price of tur dal — also the commonly consumed pulses for the masses. The high grade of tur that was priced at Rs78 a kg has now touched Rs84. The rates are expected to be higher in upmarket stores.
Roshan Kothari, a director of the agriculture produce marketing committee (APMC) at Wani in Yavatmal, said, “The season began with a rate of Rs4,900 a quintal for tur. There was gradual increase, but the rates remained below the MSP throughout the year.” Kothari estimates that farmers may be left with around 10% of the stock. Tur is harvested in January-February.
At the APMC in Hinganghat, Surendra Kothari said the rates have settled at Rs5,900 a quintal. However, this is for the best quality tur. The lower grades are still fetching a price below the MSP. Distribution of tur through ration shops has reduced the stock to that extent. Now, the scheme will continue till November, and though chana (gram) will be offered through PDS, it will have impact on the rates of tur too, he said.
Following calls by government to increase domestic production of tur, farmers had increased the area under this crop bringing down the market rates as supply increased. This kept the prices below the MSP for two years.
“To ensure that the domestic rates remain up, the government should ensure that no imports happen below the MSP,” said Vijay Jawandhia, a farm activist from Wardha.