High-level panel to review MSP, bonus for pulses

Vibha Sharma

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Tribune News Service

New Delhi, July 11

Amid widespread criticism for “ignoring” Indian farmers’ interests by “growing” pulses abroad, the government has decided to look into the possibility of reviewing minimum support price (MSP) of pulses with a “reasonable increase and bonus” to boost its production back home.

A high-level meeting headed by Finance Minister Arun Jaitley today decided to set up a committee to review the MSP of pulses, the “low level” of which, as per experts, is a key reason why the essential foodgrain is not a preferred crop of Indian farmers. Headed by the Chief Economic Adviser of the Finance Ministry, the committee will consider “reasonable increase in MSP for pulses and bonus for farmers for producing pulses and submit its report within two weeks,” officials said.

Meanwhile, as India looks for long-term government-to-government agreements with all pulses-producing countries, there is a breather in the form of increased production volumes this year.

This year, India is expected to grow 20 million tonnes (MT) pulses and the committee also decided to use the opportunity and increase the limit of the buffer stock from existing eight lakh tonnes to 20 lakh tonnes.

The domestic production for 2015-16 was 17 MT and the demand 23.5 MT. The meeting was attended by Food Minister Ram Vilas Paswan, Agriculture Minister Radha Mohan Singh, Commerce Minister Nirmala Sitharaman and Urban Development minister M Venkaiah Naidu. The setup to take care of the demand-supply gap was formed after the “poor management” of the situation by Food and Agriculture ministries, last year, came under criticism.

Meanwhile, as per officials, Paswan has offered more pulses to the states at Rs 66 for tur and at Rs 82 for urad for retail distribution at not more than Rs 120 per kg. Ministers were also concerned over prices of chana dal. They were of the opinion that the states should take strict action to ensure its availability at reasonable prices as there is good production and arrival of chana.

Ajay Vir Jakhar of the Bharat Krishak Samaj says MSP is one of the instruments available with the government with which it can increase production by providing livelihood security to farmers.