Commodities

Drop in supplies, hoarding put moong prices on the boil

Rahul Wadke Mumbai | Updated on October 17, 2020 Published on October 17, 2020

Heavy rains in Maharashtra have affected the moong bean crop with losses in some areas as high as 70 per cent.

Sources in the market say that there is an attempt by some large traders to use this shortage as an opportunity to jack up the retail prices by hoarding stocks.

Good quality beans fetches up to ₹8,500/quintal now, which is way above the MSP of ₹7,196.

Moong bean or green gram is widely cultivated in countries including India, Sri Lanka, Myanmar, Senegal, Uganda and South Africa. In India, Maharashtra is the largest producer of crop, followed by Madhya Pradesh.

Sources say that of the 3.25 lakh hectares under moong in Maharashtra, about 25 per cent has been damaged due to excess moisture and pest attack this time.

Thus, traders are keen to purchase good quality stocks which could earn them good returns in the upcoming festival season. The National Agricultural Cooperative Marketing Federation of India (Nafed) has also decided to procure moong, but farmers are not making a beeline as they are getting better prices from the market traders, sources added.

Agriculture expert and former consultant to ADB, Jagadeesh Sunkad, said that there have been numerous reports about crop losses in Maharashtra, Karnataka and Madhya Pradesh. Thus, farmers are expecting a price rally, and holding on to their crops.

Drop in arrivals

According to the Agmarknet portal data, moong arrivals in the Akola APMC market between September 1 and October 15 shrunk to 229 tonnes — a drop of about 75 per cent y-o-y.

Vishnu Bokse, a farmer from Telhara taluka in Akola, said, “I have harvested moong from about five acres of my land and have dried and stored it. I am waiting for prices to pick up further to sell my stock”.

The Secretary of Department of Agriculture, Maharashtra Government, was not available for comments.

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Published on October 17, 2020
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