Nafed to miss chana procurement target

By Puja Das

The National Agricultural Cooperative Marketing Federation of India (Nafed), which procures pulses and vegetables on behalf of the government, is likely to miss the chana procurement target in the current rabi marketing season due to slow supply from farmers amid lower production this year.

The arrivals of chana (chickpea) from 1 March to 19 May were about 1.05 million tonnes in key markets, 20% lower than the same period last year. Further, lower supply has ensured that the prices of the crop have increased.

On 20 May, chana in the wholesale markets of Maharashtra’s Akola and Nagpur and Madhya Pradesh’s Indore traded within the range of ₹4,975-5,100 a quintal as against last year’s ₹4,575-4,800 per quintal, according to spot traders. Both price ranges are below minimum support price of ₹5,335 set by the government for 2023-24 (October-March) rabi marketing season.

According to government’s second advance estimates, chana production is pegged at 13.6 MT as against last year’s final estimates of 13.5 MT.

“Nafed may be able to procure a little over 2.4 MT chana this season under the price support scheme against last year’s 2.5 MT purchased,” an official associated with the agency said. “Though Nafed is likely to miss the procurement target, it will still be more than buffer requirement.”

This year’s procurement target is 3.2 MT, a record high, against last year’s 3 MT target, in anticipation of bumper crop for second year.

The government fixes a procurement target using maximum estimate of chana output, so that farmers are paid quickly.

Emails sent on Friday to the agriculture ministry and Nafed with queries remained unanswered till press time.

This article has been republished from the Livemint.