Green Gram Prices Explained

The green gram market witnesses robust growth driven by factors such as population expansion, increasing health awareness, increasing disposable incomes, enhanced agricultural practices, the transition towards plant-based and nutritious diets, and governmental support programs for farmers.  These factors largely contribute to green gram promising prices and marketability in the future.

Presently, India represents the largest producer of green gram or mung beans accounting for around 60% of the total global production.

Why are green gram prices fluctuating?

1. Weather Conditions

The price of green grams is influenced by weather patterns which affect crop yield and quality. For example, prolonged droughts in Kenya resulted in lower yields of green grams which raised the crop’s price.

2. Market Competition

The level of market competition between producers, traders, and consumers affects green gram pricing. Typically, green gram prices decrease in competitive markets because traders compete by lowering their prices to bring in customers.

For instance, some agricultural areas in the Philippines like Central Luzon, Western Visayas, and Northern Mindanao that have a larger number of farmers and dealers tend to have lower prices for green grams compared to places that have few producers and traders.

3. Production Costs

Farmers frequently change the price of green grams to make up for any increased production expenses to recover their profit. For example, the cost of producing green grams increased by 15% in India due to increasing labor, fertilizer, and seed expenses, which in turn raised green gram prices in the market.

4. Consumer Preference

Consumer preferences play a crucial role in determining the price of green grams as they influence both the demand for the crop and the willingness of consumers to pay for it. For example, during the COVID-19 pandemic in Nepal, there was an unexpected increase in customer demand and price increases for green grams due to their considered nutritional and medical benefits.

Conversely, during the same period in Thailand, a downturn in the economy caused consumers to favor less expensive options like rice and noodles which resulted in a decline in green gram demand and prices.

Which variables impact the price of green grams?

• Weather Conditions
• Market Competition
• Production Costs
• Consumer Preference
• Demand and Supply
• Government Policies
• Global Market Trends
• Market Speculation

Where does green gram come from?

Green gram or mung bean originates in India. This legume typically exhibits green exteriors and yellow interiors. Additionally, it is harvested manually.

The process involves the following steps:

1. Timing – The timing of harvesting is determined by the maturity of the green gram pods. Usually,  it begins when the pods become yellow or brown, indicating that the seeds inside are ready to be harvested.

2. Cutting – Farmers use sickles or sharp knives to cut the plants near the base. The entire plant is usually cut, including the pods.

3. Bundling – After cutting, the plants are often collected and packaged into little sheaves so that the harvested green gram is handled and transported more easily.

4. Drying – In some cases, the bundles are left in the field for a few days to allow the pods to dry further as this helps in easier threshing.

5. Threshing – It’s the process of separating the seeds from the dried pods. Additionally, it is done by beating the pods or using mechanical threshers.

6. Winnowing – This means throwing the mixture into the air and letting the heavier seeds stay in the seeds and the lighter chaff is carried away by the wind.

7. Cleaning – The harvested and threshed green gram is cleaned to remove any remaining debris or impurities.

What are the uses of green gram?

Packed with protein, fiber, vitamins, minerals, antioxidants, and phytoestrogens, mung beans provide potential health benefits in addition to their nutritional worth.

Additionally, it is associated with the prevention and control of various health issues like diabetes, osteoporosis, heart diseases, anemia, and cancer.

Generally, green gram is acknowledged for its culinary applications with relatively few industrial uses associated with this legume. This includes:

1. Food Processing Industry – They are processed to make flour, starch, and protein isolates which are used to make snacks, noodles, and other food products.

2. Pharmaceutical Industry – Ongoing research is investigating the medicinal properties of green gram, exploring the potential for its incorporation in the development of pharmaceutical products.

3. Cosmetic Industry – Their compounds or extracts are included in some cosmetic products to maximize their potential advantages for the skin due to their antioxidant qualities.

4. Animal Feed – Due to its high nutritional value, green grams and their byproducts are included in animal feed because of their high protein content.

What is the future price of green grams?

The global green gram market experiences modest growth due to the expanding vegan population, resulting in increasing demand from individuals following a vegan lifestyle.

This trend is supported by customer interest in nutritious and organic food products. For instance, the increasing inquiries for this commodity from the European and North American regions for gluten-free and plant-based foods manufacturing show its expanding market internationally. 

Furthermore, green gram production is growing due to improved cultivation and increased farmer awareness of modern farming practices, particularly in developing countries like India. Overall, the price of a green gram will be $.47 per kilogram in 2028, exhibiting a CAGR of 3.36%.