Government Procurement of Gram Likely to Rise as Market Prices Soften

30-Apr-2025 10:53 AM

New Delhi. The Central Government’s agencies NAFED (National Agricultural Cooperative Marketing Federation of India) and NCCF (National Cooperative Consumer Federation of India), which were earlier facing difficulties in procuring gram (chana) for buffer stock, are now expected to see a significant improvement in procurement volumes. This shift comes as wholesale market prices of gram have declined to near or below the Minimum Support Price (MSP) in key producing states, particularly Karnataka, Maharashtra, and Rajasthan, due to increased arrivals and subdued demand.

Softening trends are also being reported from Madhya Pradesh and Gujarat, strengthening the likelihood of accelerated procurement efforts.

The MSP for gram was increased by 210, from 5,440 per quintal in the 2023–24 season to ₹5,650 per quintal for the 2024–25 season. As of April 29, gram prices in Karnataka mandis were recorded as follows:

• Gulbarga: 5,450–5,730

• Bidar: 5,070–5,890

• Raichur: 5,000–5,700

• Gadag: 5,640–5,885

• Hubli: 5,850–6,130

In Maharashtra, prices ranged between 5,000 and 6,100 per quintal:

• Latur: 5,750–6,100 (above MSP)

• Khamgaon: 5,500–5,650

In Rajasthan, model prices fell significantly below the MSP:

• Jodhpur: 4,800–5,250

• Kishangarh: 5,200–5,320

• Kekri: 5,200–5,300

• Kota: 5,000–5,325

• Sumerpur: 5,200–5,225

Although gram arrivals began early in Karnataka and Maharashtra, the government had limited procurement success initially because mandi prices remained higher than MSP. Now, with prices softening, the Agriculture Ministry’s approved procurement target of 28 lakh tonnes across various states is expected to be achieved more effectively.

The government’s increased procurement will not only support market stabilization but also help farmers by ensuring MSP-based returns amidst weakening open market rates.