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Chickpea MSP procurement under PSS by NAFED

Chickpea (chana) is among the most actively procured pulses by the central government under the Price Support Scheme (PSS), with NAFED — the National Agricultural Cooperative Marketing Federation — acting as the central nodal agency on behalf of the Department of Agriculture and Farmers Welfare (DA&FW). The Cabinet Committee on Economic Affairs notifies an annual chana MSP on the recommendation of the Commission for Agricultural Costs and Prices (CACP) before each rabi sowing.

Overview

The chana MSP rose from Rs 5,100/quintal (RMS 2021-22) to Rs 5,440 (2022-23), Rs 5,335 (2023-24), Rs 5,440 (2024-25) and Rs 5,650/quintal (rabi marketing season 2025-26 procurement). MSP is set on the C2+50% framework using CACP cost-of-cultivation data from major chana states.

Eligibility

Chana farmers in 11 designated states — Madhya Pradesh, Rajasthan, Maharashtra, Karnataka, Andhra Pradesh, Telangana, Gujarat, Uttar Pradesh, Jharkhand, Chhattisgarh, Tamil Nadu — can sell to NAFED-registered procurement centres when the mandi modal price for FAQ chana falls below MSP. Key conditions:

  • Farmer must register on the state procurement portal (e-Samriddhi for NAFED, AGRISNET, MP e-Uparjan, etc.) with land record (ROR/passbook), Aadhaar, and Aadhaar-linked bank account
  • Chana must meet FAQ (Fair Average Quality) specs: max 12% moisture, max 3% foreign matter, max 5% damaged/discoloured grain
  • Per-farmer cap typically 25-40 quintals/season, fixed by state notification
  • Procurement window opens with state-DA&FW notification, generally late February to May

Benefit and structure

Procurement is at the notified MSP into Aadhaar-linked accounts within 7-10 days of delivery. NAFED operates through state cooperative federations — APMARKFED (AP), Telangana State Cooperative Marketing Federation, KSCMF (Karnataka), MAHFED (Maharashtra), MARKFED (Punjab), RAJFED (Rajasthan), MPMARKFED — which run the physical procurement centres, weighbridges, gunny supply and quality inspection. Gunny, transport and handling charges are reimbursed under the PSS budget. Procured stock builds the Price Stabilisation Fund (PSF) buffer maintained at 20-30 lakh tonnes across all pulses, used for the Bharat Dal retail brand and for open-market sales to dampen consumer prices.

Implementation

In 2017-18, a glut year for chana, NAFED procured an all-time high of 32.9 lakh tonnes — about a quarter of the marketed surplus. Annual chana procurement has since ranged from 3-15 lakh tonnes depending on the gap between mandi prices and MSP. Madhya Pradesh accounts for 40-55% of chana procured; Rajasthan, Maharashtra and Karnataka together cover most of the remainder. Procurement is supplemented by stock-limit orders on traders and duty-free imports from Australia and East Africa when domestic prices spike above the buffer trigger.

Limitations

PSS chana procurement remains reactive — typically opening 4-8 weeks after the post-harvest crash, when the smallest farmers have already sold to commission agents at distress prices. Storage capacity, gunny shortages and delayed payments are recurring complaints. The 25-40 quintal per-farmer cap limits MSP coverage for medium and large growers.

See also: Bengalgram crop, JG-11 desi chickpea, KAK-2 kabuli, Pulses MSP & PSS procurement, NAFED procurement of pulses, MSP — Minimum Support Price, CACP.

Sources

  1. Price Support Scheme operations. Department of Agriculture & Farmers Welfare.
  2. NAFED chana procurement statistics. Press Information Bureau.
  3. Price policy report rabi 2024-25. Commission for Agricultural Costs and Prices.