Prospects for Improvement in Gram Demand and Prices Starting Next Month

19-May-2026 06:55 PM

New Delhi. Currently, despite low supplies in the wholesale markets of major producing states, the price of gram (*chana*) is trading approximately 10–15 percent below the government's Minimum Support Price (MSP) due to limited buying activity from pulse millers, processors, traders, and stockists. However, there are indications that both demand and prices are likely to improve over the coming weeks.

According to a leading trade organization, a government agency is currently undertaking substantial procurement of gram from farmers at the Minimum Support Price (₹5,875 per quintal). Meanwhile, imports of domestic-variety gram and yellow peas from abroad remain low. The carry-over stock of indigenous gram from the previous season has dwindled significantly, and at current lower price levels, this pulse variety is poised to attract buyers. Demand and prices are expected to firm up with the arrival of the Southwest Monsoon in June.

Last week, gram prices witnessed a slight recovery driven by diminishing supplies and an accelerated pace of government procurement. Modest demand has also begun to emerge for gram dal (split gram) and *besan* (gram flour). In the Indore market last week, gram prices rose by ₹150 per quintal, reaching a range of ₹5,850–₹5,900 per quintal—a level effectively on par with the Minimum Support Price. Meanwhile, producers in Australia appear disinclined to offload their gram stocks at current low prices and are instead holding out in anticipation of a price rally.