The government's efforts to purchase urad (black gram) this year have been minimal due to the high market prices that exceed the set minimum support price (MSP). Despite heavy imports, especially from Myanmar, and the arrival of new domestic supplies, the price of urad remains elevated, limiting government purchases.

The Central Agriculture Ministry has forecasted a sharp drop in urad production for the Kharif season, with an estimated output of just 12.10 lakh tonnes—down nearly 4 lakh tonnes from the previous year. This is the lowest production in the last decade.

To address the supply gap, the government has allowed duty-free imports of urad until March 31, 2025, with the possibility of an extension.

The MSP has been raised to Rs 7,400 per quintal, but market prices are still surpassing this level, which discourages farmers from selling to government procurement centers.

As of November 18, only a small amount—14.10 tonnes—has been procured in Rajasthan, and other states have seen minimal government purchases. Farmers are preferring to sell their produce in the open market, where they receive higher prices.

The government has set a national procurement target of 8.2 lakh tonnes for the 2024 Kharif season, with specific targets across major producing states.

However, given the current price disparity, procurement may continue until January or February in some states, with limited success.