Despite the increase in demand and price of gram, there are no signs of good supply in the markets.
12-Aug-2024 03:52 PM
New Delhi. To meet the domestic demand and need of gram and to curb the rising prices, the Central Government first exempted the import duty and conditions of yellow peas and then allowed duty-free import of gram.
When this also did not work, then storage limit was imposed on Desi gram. But no special positive result of all these measures has come out yet. In fact, in the Rabi season of 2023-24, the production of gram decreased significantly and due to the high wholesale market price, NAFED could not get much success in its purchase.
As a result, the government is not intervening effectively in the domestic market. Till last year, NAFED had a huge stock of gram, but it reduced the stock by increasing its sale.
The Union Agriculture Ministry has estimated the domestic production of gram to decline from 123 lakh tonnes in the 2022-23 season to 116 lakh tonnes in the 2023-24 season, but industry and trade analysts believe that the actual production was around 90 lakh tonnes.
The previous stock was low and it is not being imported in large quantities from abroad. In fact, when the exportable stock of gram in Australia and Africa decreased significantly,
the Government of India approved its duty-free import. Now its import can increase only when the new gram arrives in Australia in October.
Meanwhile, there is doubt about the availability of sufficient stock of gram in the wholesale markets to meet the festive demand and need in September-October 2024, due to which the atmosphere of bullishness in prices may remain intact.
At present, the open market price of Desi gram is running more than Rs 2000 per quintal higher than the Minimum Support Price (MSP) and it seems difficult for it to fall in the near future.
If the government tries to sell its stock at a cheaper price, there may be a possibility of some softening.
Big producers are still keeping stock of gram with them, which they can release in the market when the price rises.