Government procurement of tur likely to increase due to sharp fall in market prices

17-Feb-2025 12:23 PM

The government is likely to ramp up procurement of tur (Arhar) due to a sharp drop in its market price, which is now approaching or falling below the Minimum Support Price (MSP) of Rs 7,550 per quintal.

This follows a period of high prices due to weak domestic production over the past two years. The government intends to procure the entire marketable quantity of tur at MSP under the Market Intervention Scheme (MIS), aiming to support farmers and build up a buffer stock.

As of now, around 12,335 tonnes of tur have been procured under the Price Support Scheme (PSS), and this pace is expected to accelerate.

The Union Agriculture Ministry has approved the purchase of 13.20 lakh tonnes of tur for the 2024-25 marketing season.

Agencies like NAFED and NCCF have begun purchasing from states such as Andhra Pradesh, Telangana, Karnataka, and Maharashtra.

In Maharashtra’s Latur Mandi, the price of the new crop tur has dropped to the MSP level of Rs 7,550 per quintal, which is a significant reduction from last year's prices of Rs 9,000-10,000 per quintal.

This price drop should help the government procure more tur, which had been challenging in previous seasons due to higher market prices.

Trade analysts predict that retail prices of tur dal, currently around Rs 160 per kg, may also fall as the price of whole tur decreases.

The domestic production of tur for the 2024-25 season is expected to rise to 40 lakh tonnes, with an additional 10 lakh tonnes expected to be imported.

This increase in production and stock will help stabilize the market and support both consumers and farmers.