
Consumer affairs department to get marginal hike in budgetary allocation
Summary
- India’s pulse production has been declining in recent years, hindering the country’s goal of becoming self-reliant in pulses by 2027.
New Delhi: The budgetary allocation for the Price Stabilization Fund (PSF), established to build buffer stocks of farm produce and check sudden rises in food prices, may see a marginal increase in the upcoming budget for FY26, with the Department of Consumer Affairs expected to receive an increase of up to 3%, bringing its allocation to ₹10,300 crore, according to two people aware of the matter.
This increase for FY26 is aimed at supporting the procurement of pulses, onions, and potatoes for buffer stocks, given the estimated rise in the production of key staple food items.
The government procures pulses such as chana, tur, masur, urad, and whole chana for buffer stocks, either directly from farmers or, in case of crop losses, from imports.
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“There will be a marginal increase in the budgetary allocation for the Department of Consumer Affairs to support ongoing schemes," said the first person.
In addition to the ministry of agriculture, the department also undertakes the procurement of pulses under the PSF to control price volatility of essential commodities. Schemes like selling discounted pulses under the Bharat Dal brand are operated by the department, utilizing PSF funds for their implementation, the person added.
Part of commitment
The 100% procurement of pulses is part of the government’s commitment to encourage farmers to grow more pulses and reduce the dependence on imports.
India’s pulse production has been declining in recent years, hindering the country’s goal of becoming self-reliant in pulses by 2027.
The production of pulses has steadily declined, from 27.3 million tonnes (MT) in FY22 to 26 MT in FY23 and 24.5 MT in FY24, according to agriculture ministry data. Over the last five years, the highest pulse production was 27.3 MT in FY22.
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“The fund has played a key role in controlling inflation, as pulse prices remained stable despite low production. The focus is on protecting farmers from exploitation by ensuring better prices for their produce while keeping prices affordable for consumers," said the official.
The sale of onions and tomatoes at discounted rates to control prices in the retail market is also part of this policy intervention. This initiative is managed by the Department of Consumer Affairs (DoCA) to stabilize prices and ensure affordability for consumers.
Onion procurement
The Centre is also targeting to procure 475,000 tonnes of onions for the buffer stock in FY25, after production fell from 31.6 million tonnes in FY22 to 24.2 million tonnes in FY24. Meanwhile, annual household consumption of onions in FY23 stood at 19.3 million tonnes.
In September 2024, the government merged the Price Support Scheme (PSS) and Price Stabilization Fund (PSF) into the PM-AASHA (Pradhan Mantri Annadata Aay Sanrakshan Abhiyan) to better support farmers and consumers.
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PM-AASHA integrates PSS, PSF, the Price Deficit Payment Scheme (PDPS), and the Market Intervention Scheme (MIS) to ensure fair prices for farmers and stabilize essential commodity prices for consumers.
The PSF was established in 2014-15 to regulate price volatility of essential agricultural commodities. Initially, the PSF was managed by the ministry of agriculture. In 2016, the administration of the PSF scheme was transferred to the Department of Consumer Affairs (DoCA) to enhance effective control of price rises in essential commodities and provide relief to consumers.