In a proactive move to address the soaring prices of essential commodities, the Indian government is considering the sale of moong dal at a discounted rate to stabilize the retail market. As part of this strategy, a senior official revealed plans to utilize 5% or 30,000 tonnes of raw moong from existing central stocks, offering it at reduced prices through cooperatives like the National Agricultural Cooperative Marketing Federation of India (NAFED) and National Cooperative Consumers’ Federation of India (NCCF).
The government’s inventory currently holds approximately 500,000 metric tons of moong, well above the standard of 100,000 metric tons. This approach follows previous successful tactics employed for discounted sales of other essential commodities like chana, atta, and onions. The focus on moong dal is crucial, given that pulses contribute significantly to the current food inflation rate of 6.61%.
Despite the allocation to NAFED and NCCF, progress in the conversion and retail sale has been slow due to non-competitiveness in market rates. To address this, a proposed discount of ₹1,500 per quintal on the Minimum Support Price (MSP) of raw moong stock has been suggested. This discount could potentially bring the retail price down to ₹107 per kg, providing stability and affordability.
The proposal, which includes discounted prices for moong dal and moong sabut (whole), aims to counter the prevailing market rates that exceed ₹107 per kg in 408 out of 545 price reporting centers. With the anticipated stabilization of prices, this initiative seeks to benefit consumers while addressing the challenges faced by farmers and traders.
The government’s move comes at a time when the average retail prices of moong dal in India have increased by nearly 1% month-on-month and 12.7% year-on-year. The wholesale prices have also seen an uptick, standing at ₹10,643.49 per quintal. Farmers and traders attribute the initial price surge to unfavorable crop conditions and a delayed planting season, resulting from unpredictable monsoons.
Although the market prices have slightly eased from ₹14,000 per quintal to ₹8,500-10,500, they remain higher than the MSP of ₹8,558 per quintal for the 2023-24 crop year. Anticipating stable prices due to a lower kharif crop this season, the agriculture ministry estimates the Kharif moong production for the 2023-24 crop year to be 1.4 million tonnes, significantly lower than the previous season.
The proposal is now awaiting a final decision from the top authority, marking a pivotal moment in the government’s efforts to balance food prices for the welfare of both consumers and producers.
