To establish buffer stock, the government will buy tur directly from farmers at market pricing

 To establish buffer stock, the government will buy tur directly from farmers at market pricing

To establish buffer stock, the government will buy tur directly from farmers at market pricing

As of December 5, the average retail price of the product had risen by more than 40%, from Rs 112 per kilogram to Rs 155 per kg, the same as the previous year.

In the 2022–2023 crop year (July–June), the nation's tur output decreased by 20% to 34.3 lakh tonnes from 42.9 lakh tons the previous year.

A top official told Moneycontrol that the Center has chosen to purchase the crop directly from farmers at market price in order to establish a buffer supply because to the severe scarcity of its preferred dal tur in India.

For the benefit of the Ministry of Consumer Affairs, Food, and Public Distribution, the government would purchase via the National Agricultural Cooperative Marketing Federation of India (NAFED) as well as the National Cooperative Consumer Federation of India Limited (NCCF), which will buy directly from farmers. It will be put on the market when the cost of this necessary good rises.

Since NAFED serves as an insurance agency for agricultural commodities, it has access to a vast farmer database. The official said, "We'll use it to target farmers growing tur."

The official said that because of the shortfall, tur would be acquired at market prices, which are now higher than the Minimum Support Price (MSP), using money from the Price Stabilization Fund (PSF).

The government intends to encourage farmers to cultivate the crop in the next years by providing them with the guarantee of a reliable customer in the market via this action.

According to official statistics, the average retail price of the product has increased by 38% in the previous year, from Rs 112 per kg to Rs 155 per kg as of December 5. This coincides with the government involvement.

Issue

The problem with Tur has been that local production is not keeping up with demand. In the 2022–2023 crop year (July–June), the nation's tur output decreased by 20% to 34.3 lakh tonnes from 42.9 lakh tons the previous year. Tur output is expected to be 34.2 lakh tonnes in the Agriculture Ministry's first advance estimate for the crop season 2023–24, which is little less than previous year.

Nonetheless, the nation consumes roughly 45 lakh tons of pigeon pea annually.

Government statistics show that in the calendar year 2023, India imported around 7.78 lakh tons of tur. With 2.62 lakh tonnes of imports from Mozambique, 2.53 lakh tonnes from Tanzania, and 1.38 lakh tonnes from Myanmar, these three countries accounted for the majority of imports.

Actions made by the government

The Center declared in January of this year that the duty-free import policy for tur and urad would be extended until March 31, 2024, in anticipation of a drop in output of tur and urad owing to erratic weather.

Since then, the Department of Consumer Affairs has been closely monitoring the stock levels of pulses, such as urad and tur.

On June 2 of this year, the government also placed stock limitations on two pulses, enabling dealers to keep a certain quantity of shares and sell the remainder. In order to stop price increases, the administration agreed to release tur from the national buffer after the action.

Then, in order to increase local supply and manage prices, India would import 12 lakh tons of tur dal in the current fiscal year, which is 35% higher than previous year, according to Rohit Kumar Singh, Secretary, Ministry of Consumer Affairs. Get up.

The government also introduced chana dal, marketed as "Bharat Dal," at reduced rates of Rs 60 per kg nationwide in an effort to redirect consumption away from people who cannot afford expensive arhar.