Moong prices soften due to increase in production - some further rise expected

12-Dec-2024 08:28 PM

The price of moong pulses has softened due to a significant increase in production this year. The sowing area of kharif moong has risen from 31.50 lakh hectares last year to 35.46 lakh hectares this year.

This expansion has led to an expected rise in production from 11.54 lakh tonnes to 13.83 lakh tonnes, based on the Union Agriculture Ministry's first advance estimate.

As a result of the increased production, market prices have dropped, falling below the minimum support price (MSP).

This situation has prompted the government to intervene and start purchasing moong from farmers under the Price Support Scheme (PSS) to stabilize the market. The MSP for moong has also been raised by 1.4 percent to Rs 8682 per quintal.

The market, especially in Rajasthan, which is the leading producing state, has seen lower prices due to weak demand from millers and stockists.

However, analysts suggest that prices have likely bottomed out and expect some demand increase in the near future, particularly with the support of government procurement. Despite this, the abundance of stock may limit any significant price surge.

While production in states like Uttar Pradesh, Madhya Pradesh, Bihar, and Jharkhand was not very encouraging, Rajasthan had a good crop, despite some damage in Karnataka and Maharashtra.

As a result, markets in Rajasthan are witnessing a growing influx of moong, and there are signs of increased buyer demand.