As the new kharif moong hits the markets in Karnataka, prices of the pulse crop are trading lower at around Rs 5,100 a quintal, much lower than the minimum support price (MSP) of Rs 6,975 announced by the government.
The prevailing prices in the state are also lower than last year's support price of Rs 5,575/quintal, growers demand to the government to spell out the procurement strategy for the season and begin purchasing from the markets.
Farmers, this year, have brought in more area under moong in Karnataka, one of the largest producers of the pulses. The widespread pre-monsoon showers in the region during May had aided the sowing in the region. The crop is looking better this year on higher yields, boosted by good rains in early June.
The trade is buying the new crop on a need basis and there's some demand coming in from buyers in neighbouring Maharashtra.
The Commission for Agricultural Costs and Prices had estimated the cost of production of moong at Rs.4,650 per quintal and the government had declared a 50 per cent increase over this as MSP for the current year.
The government agencies are assessing the current market situation. Besides green gram, prices of other crops such as black gram, maize and jowar are likely to be under a bearish trend.
India's moong production in 2017-18 stood at 19 lakh tonnes, lower than the previous year's 21.7 lakh tonnes. Production during kharif 2017 season stood at 13.9 lakh tonnes, of which about 2.93 lakh tonnes was procured by NAFED under the price support scheme.
Bulk of the procurement — about 2.6 lakh tonnes took place in Rajasthan during kharif last year, while in Karnataka it was 21,758 tonnes only. Most of the green gram stocks, procured by government agencies from Karnataka and Maharashtra last year, have already been liquidated, while there are huge stocks in Rajasthan estimated at around 2.09 lakh tonnes.