On Wednesday, the average traded price of tur at Latur’s wholesale market in Maharashtra crossed the MSP to trade at Rs 6,150 per quintal
TUR PRICES across the state either touched or crossed their government-declared minimum support price (MSP), thereby almost ruling out any significant government procurement. However, the bigger concern for farmers is now the fate of their chana crop as the pulse continues to rule below its MSP of Rs 5,100 per quintal.
On Wednesday, the average traded price of tur at Latur’s wholesale market in Maharashtra crossed the MSP to trade at Rs 6,150 per quintal. While prices climbed a bit down on Friday to touch Rs 5,950, traders feel the lentil will trade above its MSP for most of the season. This is mainly due to the reports of lower than expected yields that have come in from across the country.
For the current kharif season, farmers had planted the pulse over 47 lakh hectares of area with Maharashtra alone reporting over 12 lakh hectares of plantation. However, unseasonal rains had taken toll on the crop with farmers reporting around 4-5 quintals per acre yields as against the normal 7-8 quintals per acre.
This is the main reason for the rally in the wholesale prices. Traders in Latur pointed out that the rally comes even as prices of tur dal has not seen much increase. “This rally is mainly due to the stockists getting into the markets in anticipation of a shortage down the line,” said Nitin Kalantri, a Latur-based dal miller and trader.
The rally comes even as the government gets ready to wade into the market to commence its MSP operations. The National Cooperative Agricultural Marketing Federation (Nafed) has opened its procurement centers but farmers are holding on to their produce in the hope of better realisation in open markets.
While tur farmers are enjoying a rare bull run in the markets, chana growers are worried of non-realisation of the MSP. India has 110.98 lakh hectares of gram plantation as against the normal 92.77 lakh hectares of normal plantation. At Latur’s market, where arrivals have already started, the pulse is now trading at Rs 4,400 per quintal as against its MSP of Rs 5,100 per quintal.
April contracts at the future’s trading platform of the National Commodity and Derivatives Exchange (NCDEX) is trading at Rs 4,500, which indicates non-realisation of the MSP through the season.
Kalantari said the government should speed up its plans for chana procurement, otherwise the farmers will not realise the MSP.
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