FCI likely to begin procuring oilseeds, pulses soon

The Food Corporation of India (FCI) might, in a few months, begin procuring oilseeds and pulses, in addition to wheat and rice. A long-term export and import trade policy linked to the minimum support price (MSP) of pulses and oilseeds is also possible.

As of now, pulses and oilseeds are not purchased by FCI, the central government’s grain procurement arm. If their prices fall, the agriculture ministry usually intervenes in a limited manner, through bodies such as Nafed and the Small Farmers Agribusiness Consortium. This should change, it was decided at a meeting of senior officials from the food, agriculture, commerce and finance ministries. It was called to determine a plan for implementing the Shanta Kumar panel report on reforming of FCI.

Officials said FCI had agreed to start procuring oilseeds and pulses once the agriculture ministry decides. “We do not have any problem in procuring oilseeds and pulses to ensure assured returns to farmers,” a senior official who participated in the meeting told Business Standard.

The Shanta Kumar panel had said the government needs to revisit its MSP policy. “There is no point in announcing MSPs for 23 commodities if it cannot create an effective support system for even paddy and wheat. Pulses and oilseeds (edible oils) deserve priority,” the panel had said in its report, given to the prime minister last month.

“On most major recommendations of the panel, the food ministry, along with agriculture, fertiliser, commerce and finance, have finalised the stand and will communicate this to the prime minister’s office in the next few days,” the official said.

He said the agriculture ministry had agreed to review the price policy for the 23-odd crops for which MSP is declared. It might trim the list, if required. FCI will also henceforth purchase rice from state governments, instead of private millers only.

On the contentious issue of lowering the foodgrain entitlement under the National Food Security Act from 67 per cent to 40 per cent, the food ministry has already said it is opposed.