Chana prices may fall another 10% after plunging 20% below MSP
Prices of chana (gram) are likely to fall another 10 per cent as fresh harvest hits the market, , after having plunged 18-20 per cent below the minimum support price (MSP) of Rs 4,875 per quintal. The additional supply will increase challenges of the government, which is already struggling to manage overflowing granaries, as it will have to procure chana under the price support scheme. A second consecutive year of bumper production, rampant smuggling of yellow peas and ample storage with the government have combined to keep chana supply robust and prices suppressed. Responding to the hike in MSP and good soil moisture levels thanks to the bountiful monsoon this year, farmers increased area under rabi pulses. The area sown under gram increased to 10.72 million hectares, up 11 per cent over the previous year’s area of 9.62 hectares.