As the new moong bean (green gram) crop has begun to hit the markets in Karnataka, prices of the pulse seed are trending lower than the minimum support price (MSP) levels, triggering demand from growers for an early start of its procurement by the Government.
Weak demand coupled with imports are seen influencing the prices. This is despite a marginal decline in kharif acreage mainly in parts of Maharashtra and Gujarat and delayed planting in Rajasthan, the major producer, due to the erratic rains. Trade sources said moong arrivals began during the past fortnight in markets such as Gadag and Bagalkot. Modal prices (the rate at which most trades took place) are hovering much below the minimum support price level of ₹7,275 per quintal.
“Arrivals are yet to pick up, but prices are ruling at ₹6,000-6,300 per quintal for good quality moong bean and between ₹6,400 and ₹6,700 for the premium quality. Average quality is fetching a price of ₹5,600-5,800 a quintal,” a trader in Gadag, North Karnataka, said.
Sluggish demand
Moong bean, a 60-day crop, is the first among the kharif crops to be harvested and is widely grown in parts of North Karnataka, Maharashtra. Rajasthan, with a normal area of over 19 lakh hectares (lh), is the largest producer. However, planting was delayed this year in Rajasthan due to late arrival of monsoon, but according to the latest estimates, moong bean area has caught up and is marginally lower than last year’s level at 19.68 lh.
Trade sources in Karnataka said the overall demand for moong bean is sluggish. “We are into festival season and consumption is likely to increase going forward, which may keep the prices stable. If prices come down further, farmers may show reluctance to sell,” a trader said.
Early procurement
The harvest of moong is closely followed by urad bean, which matures in 85-90 days. The modal price in Gadag, a major producing region, is hovering around ₹5,532 per quintal, while in Kalaburgi it is around ₹5,000 per quintal.
“Moong prices are trading below the MSP level at the start of the harvest season itself. We are urging the government to make an early start to the procurement process as large section of the farmers don’t have the capacity to store,” said Basavaraj Ingin, President of the Karnataka Red Gram Growers Association.
Farmers have planted more area under moong this year in Karnataka and the acreage has crossed 4.13 lh. The crop condition is reported to be good, despite some sporadic instances of yellow mosaic virus disease. Trade sources said the off-market transactions are also being reported, but the pricing is based on the APMC prices.
“Whatever buying is happening, is on a limited basis and the ongoing transporters’ strike is also impacting the movement of the produce,” a miller said. Though moong imports are happening, the preference would be for the local produce due to better quality, the miller said.
In May this year, the Centre had opened up the import of pulses – tur, urad and moong to keep a tab on the prices.