The minimum support price (MSP) of Rs 7000 per quintal for tur dal is almost 50% higher than the mandi rates. As a result, government agencies are finding it difficult to buy the pulse variety directly from farmers at market prices to create a one million-tonne buffer.
Only 20,000 tons of tur dar have been bought from farmers by organizations like the farmers’ cooperative Nafed and the National Cooperative Consumers Federation (NCCF), according to sources who spoke with FE after the government started buying pulses above the MSP earlier this year using a “dynamic price” methodology.
Trade sources reported that mandi prices are approximately Rs 10,400/quintal, 48% over the MSP and that tur dal arrivals have already peaked. According to officials, there has been a notable discrepancy between the supply and demand for tur dal, which has caused prices to rise.
The retail inflation rate for the category of pulses and products was 18.9% in February 2024; however, the annual price increase for the variety of pulses was reported to be 36.82%. Tur Dal has seen double-digit inflation since December 2022, and the annual price increase in December 2023 reached a record 42.4%.
