Centre tells Nafed, FCI to buy moong in Karnataka at MSP

As prices of greengram or moong continue to rule below minimum support price levels in States such as Karnataka, the Centre has asked agencies such as Nafed and FCI to start procurement operations immediately.

Moong, a minor pulses crop, is the first among kharif crops to be harvested and in Karnataka, the market arrivals of the new crop had commenced about three weeks ago. The modal prices of the new moong crop have been ruling below MSP levels in major markets in Karnataka such as Gadag, Kalaburgi and Bagalkotfor the past several weeks.

The Centre had announced an MSP and bonus of ₹5,225 a quintal for moong for the ongoing kharif season. In a bid to encourage production of pulses, the Centre had increased the MSP and also announced a bonus for tur and urad as a decline in output had led to a sharp increase in prices of pulses in recent months. For tur, the Centre had fixed a support price of ₹5,050 per quintal, while for urad it was ₹5,000 including a bonus of ₹425.

On Wednesday, the Food Ministry, in a statement in Delhi, said that Nafed and Food Corporation of India have been directed to submit a State-wise roadmap of procurement for the new crop of pulses directly from farmers.

Chairing the inter-ministerial committee meeting on prices in Delhi on Wednesday, Hem Pande, Secretary, Department of Consumer Affairs, also asked the government agencies to ensure direct payment to the farmers. Pande said that procurement centres, including mobile centres, should be arranged near farmgates. Wide publicity should be given to the procurement price — that is MSP plus bonus — procurement schedule and to the locations of the centres so that farmers benefit, the Food Ministry said. Meanwhile, trade sources said buyers have adopted a wait-and-watch stance as prices remain volatile amidst higher arrivals of pulses.

Also the government is yet to relax the norms on stock limits imposed for both millers and traders, which is preventing them from entering the markets at a time of higher arrivals.

“There is a sense of fear among the traders on the stock limits. Considering the bearish trend in prices and increase in market arrivals, the government should immediately relax the stock limit norms imposed on pulses,” trade sources said.

High prices and the increase in support prices had prompted farmers to plant an increased area under pulses this kharif. Traders are expecting a bigger crop in Maharashtra, Rajasthan and Madhya Pradesh.