Govt targets 1 million-tonne tur buffer stock to stabilize prices amid rising production

The consumer affairs ministry is leading the effort amid expectations of rising domestic production and a declining price trend.

“So far, around 200,000 tonne of tur has been procured, and the process is gaining momentum as arrivals increase in major producing states," said one of the persons cited above. “A higher buffer stock of the essential pulse will help in easing food inflation and keeping the prices of food items under control," this person said.

With procurement for the 2024-25 marketing season underway, officials expect purchases to reach around 500,000 tonnes by the end of March.

For the 2024-25 crop year, tur production is estimated at 3.5 million tonnes, a 3% increase from last year. The crop’s output has fluctuated in recent years, peaking at 4.22 million tonnes in FY22 before dropping to 3.31 million tonnes in FY23 due to erratic weather patterns and changing sowing trends.

Domestic consumption has also seen fluctuations, standing at 4.7 million tonnes in FY21, rising to 5 million tonnes the following year, before dipping to 4.6 million tonnes. Imports from Mozambique, Myanmar, Malawi, and Tanzania typically bridge the gap, with duty-free imports permitted until March 2026. The buffer stock serves as a safeguard, much like financial reserves, ensuring price stability despite the consistent demand-supply gap.

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India maintains a buffer stock of pulses to stabilize prices, deploying reserves through auctions, retail interventions, or sales to state agencies when needed. The designated buffer stock limit for pulses stands at 3.5 million tonnes annually, sourced from both domestic procurement and imports. As of early March 2025, the total central buffer stock had fallen to 1.36 million tonnes. However, officials declined to disclose the specific quantity of tur, citing concerns over potential price manipulation by traders.

Government agencies, including National Agricultural Cooperative Marketing Federation of India (Nafed) and National Cooperative Consumers Federation, are procuring tur to curb excessive price volatility. The minimum support price (MSP) is set at ₹7,550 per 100 kg. 

Despite the government’s price support mechanism, many farmers continue to sell tur below the MSP. Market rates fluctuate between ₹7,000 and ₹7,600 per 100 kg, with lower-quality produce fetching even less. 

“Since there is a bumper production of tur in all five major producing states, the government's target to procure 1 million tonne will help farmers," said Ramesh Chandra Lahoti, past president of the Federation of Karnataka Chambers of Commerce and Industry.

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Retail inflation in India eased to a seven-month low of 3.61% in February, aided in part by slower food price increases. Within the pulses segment, wholesale prices saw a deflation of 1.04% year-on-year in February, while consumer price inflation for pulses and related products rose 2.52% over the same period.

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Tur accounts for a significant share of India’s pulse production, though its contribution has fluctuated in recent years. In FY22, total pulse output stood at 27.30 million tonnes, with tur accounting for about 15.5% of the total. In FY23, tur's share dipped to 12.7% amid a broader decline in pulse production, before recovering slightly to 14% in FY24.

To manage price volatility, the government has allocated ₹4,019.83 crore under the Price Stabilization Fund (PSF) for FY26. The fund enables intervention in essential commodity markets by allowing the government to release stocks through auctions, retail distribution, or direct sales to state agencies when prices surge.

Retail prices of tur have declined across major cities over the past year, reflecting improved supply and steady imports. As of 18 March, prices stood at ₹132 per kg in Delhi, down from ₹157 a year ago. Mumbai saw an even steeper drop of 27%, with similar trends in Kolkata, Chennai, and Ranchi.

Meanwhile, procurement under the price support scheme (PSS) has slowed in recent years. The government procured just 0.69 million tonnes of pulses in the 2023-24 marketing season, down sharply from 2.83 million tonnes in 2022-23 and 3.03 million tonnes in 2021-22. The decline was primarily due to market prices staying above the MSP, despite lower production.

Agriculture minister Shivraj Singh Chouhan has approved procurement of 1.32 million tonnes of tur for FY25 across nine states, including Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Telangana, and Uttar Pradesh.