Govt to procure tur, masur dal directly from farmers to bolster stocks

At the end of February, the central stock declined to approximately 1.97 million tonnes against the buffer norm of 3.1 mt. DoCA aims to procure 80% of buffer stock requirements

In a bid to bolster dwindling stocks and stabilise market prices, the Indian government plans to procure 400,000 tonnes of tur and 200,000 tonnes of masur dal directly from farmers at the minimum assured procurement price (MAPP) or dynamic buffer procurement price (DBPP), whichever is higher, according to a report by Mint.

The Department of Consumer Affairs (DoCA) aims to procure 80 per cent of the buffer requirement for tur and masur directly from farmers at MSP or prevailing market rates.

This initiative comes in response to declining government buffer stocks, attributed to lower production levels of tur and certain other pulses, resulting in a firming up of market prices.

The MAPP is determined as the weighted average price of the previous three trading days in a district, while the DBPP is calculated based on the weighted average price on the day of procurement, along with the prices of the three preceding and subsequent trading days.

Under the plan, the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and National Cooperative Consumers' Federation of India Limited (NCCF) will procure these pulses directly from pre-registered farmers.

Tur procurement commenced in January, with the two agencies procuring approximately 8,000 tonnes so far, while masur dal procurement is slated to begin this month.

In January, Union Cooperation Minister Amit Shah had inaugurated a multilingual electronic tur dal procurement portal, which aimed to enable farmers to register and sell their produce to NAFED and NCCF at minimum support price (MSP) or prevailing market rates. Similar portals for urad, masoor, and maize farmers are anticipated to be launched soon.

During the portal launch the Union minister stated that the government was aiming for self-sufficiency in pulses by 2027 and encouraged agricultural organisations to raise awareness about the procurement portal to facilitate farmer participation.

Pulse production has risen steadily over the past decade, driven by increased minimum support prices, but challenges remain in achieving self-reliance in pulse production.

Favourable prices for tur dal over the past year have been attributed to weather disturbances affecting production levels. Despite efforts to boost output, the country's production of tur is anticipated to fall short of domestic consumption levels.

While market prices for tur dal have surged in key producing regions such as Maharashtra, Karnataka, and Andhra Pradesh, retail prices across India have seen a significant year-on-year increase.

Inflation in pulses moderated slightly in February to 18.9 per cent from 19.5 per cent in January, but remains elevated compared to 4.1 per cent recorded a year ago. This highlights the need for proactive measures to stabilise prices and ensure adequate supply.

The central stock, by the end of February, also depleted to around 1.97 million tonnes against the buffer norm of 3.1 million tonnes.