Stock-holding limits likely on chana

After wheat, tur and urad, the government is likely to impose stock holding limits on chana (gram) due to a spike in prices. Sources told FE that despite adequate availability of chana, the recent rise in prices is a concern and there is a possibility of some hoarding of stocks by traders.

With mandi prices of chana this month ruling above the minimum support price (MSP) of Rs 5,350/quintal for the first time in many years, the government wants to avoid a possible spike in prices in the coming festive season.

Sources said chana prices are not softening despite farmers’ cooperative Nafed selling about 0.6 million tonne (MT) in the open market from buffer stock of about 3 MT.

To curb hoarding and speculation amid rising prices, the government in May had imposed limits on the stocks of tur and urad dal till October 31. The import duty on tur, urad and masur has been abolished to improve domestic stocks.

In June, the government had imposed stock-holding limits for wheat till March 31, 2024.

Inflation in chana was 1.72% in July year-on-year while the prices were in the negative during January-May period this year.

The retail inflation in the “pulses and products” category rose to 13.27% in July on year from 4.27% in January, 2023.