Govt Buys Chana to Stabilize Food Prices

To preempt food price surges, the Indian government plans to purchase 1 million tonnes of chana (gram). These acquisitions, funded through the Price Stabilisation Fund, are designed to build adequate buffer stocks and maintain market stability. This initiative comes as forecasts suggest a below-normal monsoon and the potential impact of El Niño, which could reduce crop yields.

The procurement will support both farm-gate prices for farmers and ensure steady availability for consumers. Despite a reported 6.2% increase in chana production to 11.8 million tonnes in FY26, irregular rainfall poses a risk to future output and could add to food inflation. Experts emphasize the vulnerability of rain-fed crops like pulses to erratic weather patterns.

The stored chana will be released strategically to manage price fluctuations throughout the year. The current price of chana dal is ₹83.37 per kg, a decrease from the previous year. Stable chana prices are also crucial for the FMCG industry, aiding cost management and consistent product pricing, thus supporting volume growth.