Record High Chana Procurement in 2023 to Stabilize Prices: Report

Chickpea, or chana as it is known in India, is a rabi crop that is generally sown in October and November and harvested from January to March depending on maturity.

According to the latest available statistics, the government agency National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) has acquired over one million tonnes of chickpeas, according to a report given to GPC by agricultural market analyst and AgPulse Analytica's Gaurav Jain.

The NAFED was founded in 1958 to function as an agent for any government agency or cooperative organization in the procurement, sale, storage, and distribution of agricultural products. According to the GPC report, the procurement push began with a carryover inventory of around 1.4 million tonnes from last year, bringing the overall stock position close to 2.5 million tonnes.

Farmers supplied the government agency with 2.6 million tonnes of chickpeas last year. Farmers in Maharashtra and Madhya Pradesh, two main growers, sold approximately 500,000 tonnes and 211,000 tonnes of chana, respectively. Chickpea is one such pulse that is procured on a huge scale at MSP, benefiting thousands of farmers. The MSP for chana is currently Rs 5,335 per 100 kg.

According to the research, chana inventories are predicted to be between 3.5-4 million tonnes (including carryover inventory) in the coming months, with NAFED likely to maintain selling pressure in the local pulses market. NAFED unloading chana supplies in the markets will drive down prices and deter private dealers from stockpiling big inventories, according to Jain's research.

Using prior years as an example, when NAFED procurement and supplies were high, the research anticipated that chana prices would remain low for the rest of the year and that 2023 would be no exception. The early trend is obvious, as chana prices in India have already begun to fall, albeit little. India is a big user and grower of pulses, and imports only cover a small percentage of its consumption demands. India's staple grains are chana, Masur, urad, Kabuli chana, and tur.