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Losing the pulse: Farmers will suffer a setback with falling chana prices. Govt must observe - Shweta Saini and Pulkit Khatri

-ThePrint.in

With prices of chana trickling for two years now, the government must revisit its policies and save the crop before it is too late.

Chana prices in India have been ruling below their minimum support price (MSP) levels since the last two years. But unlike cereals, edible oils, and vegetables, where inflation is regularly reported, falling prices of such crops seldom make it to the national media. These prices are important for farmers who make sowing decisions. Usually, higher prices encourage acreages and vice versa. Chana is a rabi crop and now is the season when farmers would be deciding if they should sow the crop.  Therefore, it is important that we revisit the reasons why prices of chana have been below MSP and what can the government do to lift the chana farmer and trader sentiments.

Chana in India’s pulses basket

Chana is one of the most important pulse crops in the country. Last year, India produced about 14 million metric tons (MMTs) of chana (half of the country’s total pulses produced is chana). Globally, India is the largest producer and consumer of chana. Close to 70 per cent of global chana is produced in India (as per FAO for T.E. 2019-20). Other chana-producing countries include Australia, Turkey, Russia, Myanmar, Canada, and Pakistan. Despite being the largest producer, India is a net importer of chana. It imports mainly from Tanzania, Sudan, Myanmar, and Australia. Currently, there is an import duty of 44 per cent on kabuli chana (chickpeas) and 66 per cent on desi chana (Bengal gram). Import from the least developed countries (LDC) like Tanzania and Sudan is on zero duty.

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