Government Approval for Procurement

The Indian government has recently approved the procurement of key kharif crops, such as green gram (moong beans) and sunflower seeds, in Karnataka under the Price Support Scheme (PSS). This decision is crucial for exporters and stakeholders in the agriculture sector, as it provides a safety net for farmers and ensures market stability. The announcement comes at a time when prices for these crops have been fluctuating below the Minimum Support Price (MSP). The Ministry of Agriculture approved the implementation of the Price Support Scheme (PSS) for the Kharif 2024-25 season. This scheme includes the procurement of a maximum of 22,215 tonnes of green gram from Karnataka. The government’s decision to procure these crops at MSP is aimed at protecting farmers from price volatility and ensuring that they receive a fair price for their produce.

Market Response and Current Pricing Trends

The announcement of the procurement has led to a slight improvement in green gram prices in Karnataka. In recent weeks, prices in North Karnataka, a key growing region, have been below the MSP due to the arrival of new crops in the market. However, following the government’s announcement, the modal price at the Gadag APMC market yard, the largest market for green gram in the region, increased. The average daily arrivals of green gram in Gadag ranged from 1,000 to 1,500 tonnes, indicating steady market activity.

Overview of Green Gram Production

Green gram is one of the earliest kharif crops to be harvested, with a short crop cycle of about sixty days. According to data from the Ministry of Agriculture, green gram was planted on approximately 3.324 million hectares (mh) across the country for the current Kharif season as of August 16, compared to 30.26 lh in the previous year. Rajasthan is the largest producer of green gram, followed by Karnataka and Maharashtra. In Rajasthan, the area under green gram cultivation increased to 2.205 mh this kharif season, up from 2.053 mh a year ago. Last year, the green gram growing regions in Karnataka faced drought conditions, which adversely affected sowing. However, this year, favourable weather conditions have supported a significant increase in acreage.

Sunflower Seed Procurement and Market Impact

The government has also approved the procurement of 13,210 tonnes of sunflower seeds at an MSP. Sunflower seeds are an important oilseed crop, and the government’s decision to include them under the PSS will help stabilize prices and support farmers. The procurement of sunflower seeds is expected to provide much-needed relief to farmers who have been facing low prices and market uncertainties. The government’s decision to procure green gram and sunflower seeds at MSP has significant implications for exporters and the broader agricultural market. By ensuring stable prices and providing a safety net for farmers, the procurement initiative is likely to enhance market confidence and encourage investment in the agriculture sector.

The approval of the procurement of green gram and sunflower seeds at MSP in Karnataka under the Price Support Scheme is a significant move by the government to support farmers and stabilize the market. With increased acreage and favorable weather conditions, the prospects for the Kharif 2024-25 season appear promising. Exporters and stakeholders in the agriculture sector should remain vigilant and adapt their strategies to capitalize on these opportunities.