Trying out all possible ways to control pulse prices, the government has set up a committee under the chief economic adviser Arvind Subramanian to frame a long-term policy on pulses, which will look into options of increasing the Minimum Support Price (MSP) and the bonus to promote pulse cultivation.
The Arvind Subramanian-headed panel will give its report in two weeks and will suggest an appropriate policy to promote cultivation of lentils in India. The decision came following a high-level committee, chaired by Finance Minister Arun Jaitely along with Food Minister Ram Vilas Paswan and Urban Development Minister M. Venkaiah Naidu, to review the availability of pulses and their prices.
Food minister has expressed hopes that prices will fall in two-three months. To address domestic shortage through imports, the minister added that the government has decided to talk to other pulse-growing countries like Canada for long-term import of lentils on a government-to-government basis that will encourage farmers in those countries to produce more. The government has also decided to increase the buffer stock for pulses to 20 lakh tonnes from eight lakh tonnes to contain price rise. There could be more incentive in the form of a bonus if the panel decides.
The production of pulses in India is expected to increase to 20 mt this year from 17 mt last year, following a sharp increase in MSP announced earlier. So far the government has procured over 1.19 lakh tonnes of pulses in 2016-17 crop year (July-June) that are being offered to state governments for retail distribution at a subsidised rate of Rs 120 per kg.