Cabinet Approves Release of Pulses to States | 10 Aug 2018

The Cabinet Committee on Economic Affairs, has approved the release of pulses to States/UTs at discounted rate to be utilized for various Welfare Schemes from the stock of pulses procured under Price Support Schemes (PSS).

Price Support Schemes

  • The Price Support Scheme(s) of the Government is directed at providing insurance to agricultural producers against any sharp fall in farm prices. The minimum guaranteed prices are fixed to set a floor below which market prices cannot fall. E.g.: Minimum Support Prices (MSP) and Procurement Prices.
  • National Agricultural Cooperative Marketing Federation of India Ltd.(NAFED) established in 1958 and registered under the Multi State Co-operative Societies Act. is one of the central Nodal Agencies for procurement of agricultural commodities under Price Support Scheme (PSS).

Impact

  • The decision will enable the States/UTs to use pulses in various Welfare Schemes like PDS, Mid-Day Meal Scheme etc.
  • It will also ensure availablity of the warehouses, which may be required in coming Kharif season for storage of commodities procured under Price Support Scheme.

Details

  • Under this approved Scheme, the States/UT Governments are offered Tur, Chana, Masoor, Moong and Urad at discount of Rs.15 per Kg over the prevailing wholesale market price of the sourcing state on "first come first serve" basis.
  • The State/UTs Governments will utilize these pulses in their various Welfare Schemes/Programmes like Mid-Day Meal, Public Distribution System, Integrated Child Development Programmes (ICDP) etc.
  • This will be one-time dispensation for a period of 12 months or complete disposal  of pulses stock whichever is earlier.

Background

  • Country has witnessed all time high production of pulses during the last 2 years.
  • Government of India under Price Support Scheme has made record procurement of pulses during Kharif 2017 and Rabi 2018 marketing season.
  • In the coming Kharif season the production of pulses is expected to be good.
  • This coupled with increase in Minimum Support Price will require additional procurement under Price Support Scheme.