The decision was taken at a Cabinet meeting here.
An official from the Food and Civil Supplies Department said the move is expected to give relief to over 70 lakh families across the state.
"Prices of tur (arhar) dal have been rising from the last few days which is putting burden on the common man. Hence, the government has decided to sell tur dal at a rate of Rs 120 per kg to BPL families and beneficiaries of Antyodaya Anna Yojana (which covers poorest among the BPL families)," the official said.
The government will purchase tur dal from NCDEX Spot Exchange for which a sum of Rs 84.74 crore allocated, the official said.
Dal prices in domestic markets are retailing as high as Rs 198 per kg due to shortfall in the local output in the wake of two consecutive droughts.
Former Chief Minister Ashok Chavan criticised the move and termed it as a "publicity stunt". "First the BJP Government indulged in publicity by selling tur dal at Rs 100 per kg when their prices had shot up to Rs 200 per kg last year. This is their new publicity stunt," the Congress leader said.