The Union agriculture ministry, which traditionally initiates kharif crop procurement in October upon state requests, is grappling with a dilemma this season. The ministry has not been able to procure any moong (green gram) or urad (black gram) pulses due to their elevated prices. This situation threatens to hinder the procurement of these pulses under the price support scheme (PSS) for this season, with potential implications for the food security of vulnerable populations.
Urad prices in key mandis (wholesale markets) in Maharashtra, a significant pulse-growing state, currently range from ₹9,300 to ₹10,000 per quintal. Moong pulses are being sold for ₹8,000 to ₹8,500 per quintal for the mill-quality variety and ₹10,500 for the snack-quality variety, according to industry sources. The government has established minimum support prices (MSP) for moong and urad at ₹8,558 and ₹6,950 per quintal for the 2023-24 kharif marketing season.
The major kharif pulse-producing states include Maharashtra, Karnataka, Madhya Pradesh, Rajasthan, and Gujarat. Among these states, the first three have been significantly impacted by erratic monsoons this season, leading to a reduction in the area under pulse cultivation.
Over the past year, retail prices of moong dal have surged by 10.4%, and urad dal prices have risen by 8.6%, according to the consumer affairs ministry’s price monitoring division.
The agriculture ministry is facing a challenge in commencing the procurement of moong and urad pulses this season, as their prices remain substantially higher than their MSPs. The official source noted that “procurement of kharif moong and urad seems difficult this season unless prices fall significantly.”
In the case of tur (arhar or pigeon pea), which has witnessed the highest price increase among all pulses over the last year, prospects for procurement remain uncertain until fresh crops enter the market in December.
The lack of procurement activities may place additional pressure on the government’s buffer stock of pulses, which is already below the buffer norm, except for some pulses like moong and chana (gram). Last year, kharif pulse procurement was notably low, although some quantities of one or two pulses were procured under the price support scheme. The procurement window typically remains open for 90 days.
While the total pulses stock currently meets the buffer norm, kharif pulses stock levels are insufficient, particularly for urad and tur. The government’s central pool holds 39,000 tonnes of urad and 88,000 tonnes of tur, including PSS and PSF (price stabilisation fund), compared to the buffer norm of 400,000 tonnes and 1 million tonnes.
In the case of moong pulses, the stock stands at 525,000 tonnes against a norm of 100,000 tonnes. Overall, the government has a total of 3 million tonnes of pulses in its stock. Maintaining a buffer stock of grains, pulses, and oilseeds is a government strategy to ensure availability, even in the event of production shortfalls.
To promote increased pulse production, the government recently eliminated the procurement ceilings of 40% for tur, urad, and masur under PSS operations for the 2023-24 crop year. This move was designed to encourage farmers to expand the sowing area for these three pulses in the kharif and rabi sowing seasons and boost production.
Queries directed to the Ministry of Consumer Affairs, Food, and Public Distribution, which oversees the price support scheme, remain unanswered.
The price support scheme aims to provide remunerative prices to growers, stimulate higher investment and production, and ensure the availability of supplies to consumers at reasonable prices, with minimal intermediation costs.