The demonetisation of the old ₹500 and ₹1000 banknotes have had an interesting side effect — the prices of pulses have dropped by almost half in Bhopal over the past month, reaching a two-year low.
Traders say the continuous increase in price of pulses resulted in farmers growing pulses in large quantities this year. After demonetisation, the demand dropped.
“The minimum support price for some pulses has been increased by the government, which give a boost to farmers. Farmers focused on growing the crop to make a good profit, while government also imported more pulses to boost the domestic supply, thus levelling the demand and supply,” said Confederation of All India Traders (CAIT) spokesperson Vivek Sahu.
However, after taking actions to curb the soaring price of pulses, the Centre announced the demonetisation, and people have stopped purchasing non-essential items due to the prevailing cash crunch.
“Now, markets are selling food grains and pulses at a much lower rate but customers are not willing to purchase them,” Sahu said.
“Due to the cash crunch and decrease in demand of pulses, hoarders and middlemen have not made any attempt to hoard pulses, which has resulted in the pulses being supplied to the market in an ample amount,” said Akhil Bhartiya Vyapari Mandal general secretary Anupam Agrawal.
However, the drop in the price will not affect the condition of farmers in the state, say agriculture experts.
Moong Dal Rs 60-80 (Rs 130-150)
Urad Dal Rs 55-70 (Rs 125)
Chana Dal Rs 110-115 (Rs 130)
(prices in brackets show old prices)