The Centre is considering extending the supply of pulses at subsidised prices through ration shops for another six months till February 2010, even as most of the states have not lifted the grains.
"We may extend the scheme for six months to curb price rise," a senior government official said.
Last year in October, the centre had launched the scheme to supply 4 lakh tonnes of pulses at a discounted rate of Rs 10 per kg, in order to give relief to the weaker sections, who could not afford to buy pulses due to high prices.
The scheme was valid for six months, but it was extended till September 30, 2009.
At present, prices of key pulses like tur have risen to Rs 85 per kg due to a demand-supply mismatch.
As the scheme approaches the closure by this month, less than 1,00,000 tonnes of pulses have been lifted so far by only four states for the distribution through ration shops.
"Of the four 4 lakh tonnes, less than one lakh tonnes of pulses have been lifted by Andhra Pradesh, Tamil Nadu, Kerala and West Bengal," the official noted.
Andhra Pradesh had lifted the highest quantity of about 40,000 tonnes from the Centre.
Many states have not implemented as they do not have proper logistics for taking the supply, the official said.
When contacted Food and Civil Supplies Commissioner of Karnataka, H R Srinivas, reasoned that the Rs 10 per kg subsidy was not enthusing people to buy from ration shops.
"We could not lift as prices were too high. Even after the subsidy, pulses were costly," Srinivas said.
The Central subsidy is based on the import cost of pulses and not on the market prices.
If the public sector undertakings, entrusted with the task of pulses import, do not buy the grains at competitive rates from the overseas markets, they would not be able to offload at cheaper rate than market prices, experts said.
Public sector trading firms MMTC, PEC and STC, and agri cooperative Nafed are importing pulses on behalf of the government. Both private sector and PSUs share equally in the country's estimated 20-30 lakh tonnes of pulses import.
These PSUs had imported 10.25 lakh tonnes of pulses in 2008-09, out of which 8.06 lakh tonnes arrived in the country and they were able to sell 3.84 lakh tonnes.
