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How India plans to tackle over 500,000-tonne buffer stock of pulses

March 23, 2017 16:08 IST

Till date, the government has purchased a little over a million tonnes of pulses from farmers, of which about 600,000 tonnes is from domestic procurement; the rest is through import

The finance ministry has asked the NITI Aayog and the department of consumer affairs to frame a comprehensive pricing policy for liquidation of its over 500,000-tonne buffer stock of pulses.

That apart, it has also been decided by a Price Stabilisation Fund Committee to continue procurement of tur or arhar (split red gram) till April 15 in view of a bumper harvest.

That for urad (black gram) and moong (green gram) won't be continued, except in areas where purchase coupons have already been issued to farmers.

The government has also decided to start purchasing chana (chickpeas) and masur (red lentils) till July.

Till date, the government has purchased a little over a million tonnes (mt) of pulses from farmers, of which about 600,000 tonnes is from domestic procurement; the rest is through import. The plan is for a buffer stock of two mt, for use to keep a lid on prices when there is a shortage.

The government has also decided to dispose of nearly 100,000 tonnes from its buffer as a one-time measure, ahead of the new procurement season.

Officials said the need for a comprehensive pricing policy, covering both procurement and disbursement, was felt to keep the subsidy burden at a minimum.

The government already bears a subsidy of Rs 140,000 crore a year on procurement, storage and distribution of foodgrain.

"The pricing policy should be based on the twin goal of ensuring an adequate price to farmers for the crop and making available the pulses at affordable rates to consumers," officials said.

Officials said the decision to take NITI Aayog's help for a comprehensive pricing policy was taken at a meeting of the Price Stabilisation Fund (PSF) Management Committee.

This has been formed to monitor procurement and distribution of key essential commodities and also operate the over Rs 1,000 crore (Rs 10 billion) PSF.

The panel also approved a request from the Maharashtra government to hire private godowns for storing of pulses and to allow local authorities to purchase sacks from the market, after the ministry of textiles expressed its inability to supply these.

The shortage of these has been a problem in that state, one of the biggest growers of pulses.

India, Vietnam both retreat

The tit-for-tat ban on farm products between India and Vietnam has ended with the government here having withdrawn the ban on import of coffee beans, bamboo, black pepper and cinnamon from that country.

Earlier this month, Vietnam had banned the import of five agricultural items from India, on the grounds that they did not meet their phytosanitary norms.

India then banned the import of the four items mentioned, saying these norms were also violated by Vietnam. Both countries have since decided to drop the charges, after strong opposition from coffee and spices exporters.

Photograph: Rupak De Choudhuri/Reuters

Sanjeeb Mukherjee in New Delhi
Source: source image