Share this
Summary: The Indian government has significantly bolstered its pulse buffer stocks by procuring over 400,000 tonnes of various pulses including pigeon peas, lentils, and mung beans under the price support scheme (PSS). This strategic move aims to ensure farmers receive fair prices while simultaneously providing the government with inventory to regulate market prices.
Government Procurement Strengthens Pulse Market Stability
The Indian government has successfully procured more than 400,000 tonnes of various pulses through its price support scheme (PSS), substantially strengthening its buffer stocks. This procurement initiative serves two critical functions in the agricultural ecosystem: ensuring farmers receive the government-fixed minimum support price (MSP) and providing authorities with inventory to regulate market prices when necessary.
The National Agricultural Cooperative Marketing Federation (NAFED) is spearheading the PSS procurement efforts. To date, NAFED has purchased 262,000 tonnes of pigeon peas (tur) at the MSP of ₹75,500 per tonne. Karnataka has emerged as the primary source, contributing 125,000 tonnes, while Gujarat and Andhra Pradesh have each supplied over 40,000 tonnes.
Mung bean procurement has reached 176,000 tonnes at the MSP of ₹86,820 per tonne, with Rajasthan contributing significantly with over 145,000 tonnes. These purchases were made from the kharif (summer) crop harvest.
Ongoing Winter Crop Procurement
The government continues its pulse procurement during the current rabi (winter) crops marketing season. Since April 1, it has purchased 10,385 tonnes of chickpeas, primarily from Telangana and Madhya Pradesh, at the MSP of ₹56,500 per tonne.
Additionally, the government has acquired over 50,000 tonnes of lentils at ₹67,000 per tonne, with almost all procurement taking place in Madhya Pradesh.
Strategic Buffer Stock Building
Industry analysts anticipate that the Indian government will eventually build a buffer stock exceeding 4.5 million tonnes of pulses. The majority of these purchases are expected to come from chickpeas and lentils.
In a complementary move to strengthen domestic markets, the government has reinstated a 10% import duty on both chickpeas and lentils. It has also promised state governments support for purchasing pulses from farmers at MSP rates.
Conclusion
The government's comprehensive approach to pulse procurement and market regulation demonstrates a strategic balancing act between supporting domestic farmers and managing market prices. These measures are likely to prevent both steep price drops and sharp increases in the domestic market, while simultaneously stabilizing global pulse prices. For international traders and domestic stakeholders alike, this signals a period of relative price stability in the pulse market, albeit with potentially narrower trading margins. Stakeholders in the agri-commodity space should closely monitor further procurement activities and policy announcements as the government works toward its ambitious buffer stock targets.