Volatility of prices has been one of the major reasons for farmers being weaned away from pulses towards sugarcane.
Pune: Last year, when prices of dal had rocketed, both the state and central governments had announced several efforts to increase cultivation of pulses in the country. While the area under cultivation has seen an increase by 119 per cent, wholesale prices of the commodity has seen a dip, which many say might hamper a permanent increase in the cultivation area.
Over the last 25 days, prices of pulses in the wholesale markets of Maharashtra have seen a drop by 20 per cent. Good monsoon and reports of good harvests in the overseas markets are the major causes attributed to the dip.
Pravin Dongre, chairman, India Pulses and Grains Association (IPGA) said that a further price drop is expected across wholesale markets. The sowing report issued by the state agriculture department shows that sowing of tur dal has increased by 123 per cent, while that of moong and urad dal has increased by 115 and 124 per cent respectively.
This has changed market sentiments and has resulted in liquidation of stocks from farmers/millers/ traders. Dongre said that at the same time, the demand from the end consumer is down. Moong dal is already being traded near its Minimum Support Price (MSP) value. Once imported pulses start hitting the market from September, more price correction is expected.
Volatility of prices has been one of the major reasons for farmers being weaned away from pulses towards sugarcane. Even in water-stressed Marathwada, the cultivation area of pulses has recorded a steady decrease as farmers complain of lesser returns.
In an ambitious move, the state government has decided to increase the cultivation area, with 2016 being designated as the year of pulses. If prices continue to dip, doubts are being raised if it could be achieved.