Keeping Prices of Pulses in Control: 10 Awesome Steps Modi Govt. is Taking

Keeping Prices of Pulses in Control: 10 Awesome Steps Modi Govt. is Taking

We have here a grave problem – despite being the world’s largest producer of pulses, India’s domestic consumption outstrips its production. So far, the shortfall has been met by imports, but this has lead to a drastic rise in prices, urging people to demand long-term solutions to meet the deficit.

It is explicit that we need to increase the production of pulses, but the task at hand needs large scale, long-term planning. Among other things, it requires the farmers to be encouraged to grow more pulses, and also get be assured to get a Minimum Support Price (MSP).

In this regard, the government has already buckled up their belts. The following is a list of steps taken by the government so far:

1.To increase the production, the government is promoting the cultivation of pulses through NFSM, which covers 622 districts across 27 states. 50% of the allocations by NFSM are made for pulses.

2. The cabinet Committee on Economic Affairs (CCEA) chaired by PM Modi has given its approval for the creation of a buffer stock of Pulses.

This stock will be created from this year itself. Having a buffer stock will have several positive impacts, including the stabilization of pulse prices.


3.50,000 ton pulses from the Kharif crop 2015-16 and 1,00,000 tons from the rabi crop of 2015-16 have been approved for procurement to create the first buffer.

4. The procurement of these crops will be done at market price, above the Minimum support price (MSP) out of the Price Stabilization Fund.

This procurement will be done at market prices through organizations such as the Food Corporation of India (FCI), National Agriculture Cooperative Marketing Federation of India Ltd. (NAFED), Small Farmers’ Agribusiness Cosortium (SFAC) and other agencies, which may be decided by CCEA.

5. According to plans, in case of any deficits in production, pulses will be imported via Public sector enterprise of the Ministry of Commerce.

6. Also, in case the prices fall below the MSP, pulses for buffer stock will be purchased at MSP under the Price Support Scheme of the Department of Agriculture, Cooperation and Farmers Welfare.

7. As projected, the step to create a buffer of pulses will be beneficial to the farmers in more than one ways

On the one hand it will help in reducing price fluctuations and keep a check on inflation. On the other hand farmers will be encouraged to take up large scale production of pulses. If all goes well India, the largest producer of pulses, will also become self-sufficient in meeting its domestic requirements.

Speaking of price fluctuations, production of pulses in India is still dependent upon rainfall. If we have a buffer stock of pulses available with us, price fluctuations can be handled prudently. Moreover, the farmers will also be assured with remunerative prices, which is need of the hour to encourage pulse production

8. The Ministry of Agriculture has identified a gap in the present day strategy to increase production of pulses. According to them, lack of availability of new varieties of seeds is an important hindrance in increasing the present productivity.

The ministry is also going to focus more on related concepts such as Integrated Nutrient Management, Integrated Pest management and Farm Mechanisation.

9. The government intends to expand the scope of National Food Security Mission (NFSM) from 2016-17 for additional increase in the production of pulses.

10. According to sources, the government is also taking definitive steps in the 2015-16 and summer of 2016-17:
This is what the PMO’s Facebook has shared:

1.Allocation of additional Rs.440 crore for rabi and summer pulses;
2.Inclusion of cluster demonstrations in rice fallows for pulses cultivation in rabi season from 2015-16 under BGREI (Bringing Green Revolution in Eastern India) scheme in order to increase production of pulses in Eastern India in states of Assam, Bihar, Chhattisgarh, Jharkhand, Odisha, Eastern U.P. and West Bengal;
4.A special programme for demonstration of new varieties of pulses through Krishi Vigyan Kendra (KVKs) has been taken up from Rabi 2015-16 in order to increase availability of seeds of new varieties of pulses and promote adoption of new varieties;
5.Substantial increase in the MSP for gram from Rs.3175 to Rs.3425 and for lentil (Masur) from Rs.3075 to Rs.3325 for the rabi marketing season 2016-17.

By Pratima Kalra

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