Taking steps to tame pulse prices: Food minister
Food minister Ram Vilas Paswan says the govt has created a buffer stock of 50,000 tonnes of pulses and is importing 26,000 tonnes to tame the prices
New Delhi: The central government on Wednesday said it is taking steps to reduce high retail prices of pulses to benefit consumers and push up weak onion prices to support farmers.
“We have created a buffer stock of 50,000 tonnes of pulses and are importing 26,000 tonnes," food and consumer affairs minister Ram Vilas Paswan said, adding “in 2016-17, we will procure 100,000 tonnes and states have been asked to send their requirements."
Paswan said that Andhra Pradesh and Tamil Nadu have benefitted from central supplies and several states including Telangana, Maharashtra, Rajasthan, Haryana and Karnataka have sent their requirements.
Consecutive droughts in 2014 and 2015 have hurt production of pulses, a rain-fed crop. Production fell to 17.3 million tonnes in 2015-16 from 19.8 million tonnes in 2013-14, according to the second advance estimate released in February.
India imported a record 5.8 million tonnes of pulses in 2015-16, nearly a quarter of the domestic demand estimated at 23.7 million tonnes.
However, as the harvest in 2015-16 suffered because of the drought in states such as Madhya Pradesh, Maharashtra, Karnataka and Uttar Pradesh, lower production could lead to an increase in prices.
According to consumer affairs ministry data, urad dal or black gram is sold at a maximum price of ₹ 195 per kg in Bengaluru while tur or pigeon pea is sold for ₹ 170 per kg in Kanpur.
On the falling price of onions in the wholesale market, the food minister said that the Centre will purchase 15,000 tonnes and create a buffer stock to support prices.
“When onion prices rise, consumers are in tears and when prices fall, it is the turn of farmers," Paswan said, referring to the production glut and farmers selling the produce for ₹ 2-3 per kg in wholesale markets.
This is due to a 1.4 million tonnes increase in production in 2015-16, Paswan said. Onions will be purchased from farmers at a price not less than ₹ 8.5 per kg, he added.
The minister informed that price stabilisation efforts are funded through the ₹ 900 crore fund earmarked in the budget for 2016-17.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!