Chana prices dips below MSP as bumper yield

Chana price has fallen below the government’s minimum support price (MSP), forcing farmers to hold the stock even as it means more misery for them. Price pressure on Chana has come mainly due to bumper yield and higher acreage under pulses.

Local traders in parts of Madhya Pradesh and Maharashtra are quoting about Rs 1,000 less than the MSP of Rs 4,400 a quintal announced by the Central government. Lower prices has dashes farmers hope of getting higher price for their produce.

Madhya Pradesh accounts for nearly 50 per cent of the country’s total Chana production, market prices for Chana have fallen in Madhya Pradesh in spite of the state government starting procurement since April 1.

Last year, Chana prices were very high and that is why the area under it went up. Secondly, dry peas coming from Canada are now being used as adulterant in Chana besan (gram flour). So, that is the reason Chana prices have crashed.

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