Bhopal: Poor rainfall together with weak distribution system may lead to further rise in the prices of pulses around Diwali, a study by industry body Assochem said.

Releasing the study here on Monday, Assochem secretary general D S Rawat said Gram (Desi Chana) in particular could shoot up benefiting the middlemen the most.

Rawat said that,"It has been noticed that while farmers benefit marginally to the extent of 10 to 15 per cent on account of rising prices of pulses, middlemen are the biggest
beneficiaries to the extent of 85 per cent."

Assochem has worked out the demand for pulses this year at 21 million tonnes which would go up to 21.42 million tones in 2013/14 and 21.91 million tonnes in 2014/15.

It said that there is a marginal surplus in availability which is due to demand compression and floating stocks. As the prices soften, demand will catch up and the surplus will be offset.

Assochem also noted that the existing MSP (minimum support price) for pulses is not backed by assured procurement as in the case of rice and wheat and a government agency
should be entrusted with the responsibility of monitoring prices and undertake timely intervention.

(Agencies)

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