Average market prices of gram 11% lower than MSP in India during March-June 2022

Lowest price was reported at Rs 4,545 per quintal in June

The Commission for Agricultural Costs and Prices (CACP) has stated that average market prices of chana (gram) in India have remained 11.1% lower than the minimum support price (MSP) during the current season — rabi marketing season (RMS) 2022-23 — during March-June 2022.

The MSP for gram for the RMS 2022-23 is Rs 5,230 per quintal. For the forthcoming RMS 2023-24, the Indian government has raised its MSP by Rs 105 to Rs 5,335 per quintal.

In its ‘Price Policy for Rabi Crops: The Marketing Season 2023-24’, the CACP has mentioned that for the RMS 2022-23, lowest price of gram was reported at Rs 4,545 per quintal in June 2022.

CACP mentioned in its price policy that market prices of gram remained below MSP in all the states during March 2022, except for few days in Karnataka and Uttar Pradesh. However, the market prices started increasing from April 2022.

The market prices hovered along with or below MSP during the rest of the marketing season, except Rajasthan and Madhya Pradesh, where the rates are recorded below the MSP throughout April.

In the RMS 2022-23, the market price volatility was found to be higher in Karnataka and UP as compared to MP and Rajasthan.

According to the CACP, during the RMS 2022-23, UP has reported market prices equal to or above MSP on 23 days. In the remaining reported days, the variation is found to be mostly less than 5% of the MSP.

A similar trend has been observed in Karnataka, where market prices in 38 out of 109 reported days marked were above or equal to MSP. The average difference between market prices and MSP is found to be -3.1% in Karnataka.

For MP and Rajasthan, market prices were below MSP on almost all days. The average difference between market price and MSP in MP and Rajasthan was -11.3% and -13.6% respectively.

Market prices vis-a-vis MSP of gram in major producing states in RMS 2022-23 (March-June 2022)

States Number of days market prices reported Number of days market prices were above or equal to MSP Average difference (%) between market price and MSP
Karnataka 109 38 -3.1
Madhya Pradesh 122 2 -11.3
Uttar Pradesh 122 23 -2.9
Rajasthan 120 0 -13.6

Source: 1) AGMARKNET, Directorate of Marketing & Inspection, Department of Agriculture, Cooperation & Farmers Welfare, Ministry of Agriculture & Farmers Welfare, 2) Directorate of Economics & Statistics, Ministry of Agriculture & Farmers Welfare

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