 "Wholesale, retail pulses price trends diverge")
The government is working on a multi-pronged strategy to boost supply of pulses both through imports and also by boosting domestic production, which, for years, have remained stagnant at around 17-20 million tonnes per year.
To boost domestic production and to review the minimum support price and bonus scenario, it has appointed a high-powered panel under chief economic advisor Arvind Subramaniam.
The panel, which is expected to give its report in next few weeks, will look at the entire gamut of issues surrounding MSP of pulses and also the bonus announced by the government from time to time to encourage farmers to plant more pulses and shift from other crops.
Pulses, which so far, have at best been a marginal crop in the Indian context, grown largely in rained areas without much attention from farmers.
However, with per capita consumption of pulses growing at a fast clip with rising income levels, pulses demand had consistently failed to match supplies.
The global surplus of pulses is also limited to just around 15-17 million tonnes per year of which India is perhaps biggest buyer, purchasing around 2-4 million tonnes.
In such a scenario, it is imperative to bring pulses at the forefront of Indian agriculture and prices are the best way to attract farmer attention towards pulses.
The Subramanium panel will have to look at all these issues as though Centre has been repeatedly raising prices of pulses since the last few years and also announcing bonus from time to time, but there has not been major shift in area.
It's attempt to encourage farmers to diversify towards pulses in western Uttar Pradesh from sugarcane has also not yielded desired results due to poor purchase infrastructure and ‘neelgai’ menace.
Also, lack of assured buying from the government has meant that market price has consistently ruled higher than the increased pulses MSP, making them virtually meaningless. The CEA will need to address all these issues.
Though the CACP is mandated to look at MSP of almost 27 crops including pulses and it follows a rather elaborate mechanism of state consultation and discussion before arriving at the MSP’s, but so far it has been mostly focussed on wheat and rice, the two crops where government is the primary buyer.
Though, in the last few years, CACP has had a strong look at pulses MSP and has consistently raised it by a higher percentage than grains, but government probably feels more can be done and hence a expert panel has been constituted to study the issues in detail and if required suggest remedial measures.
The Subramanium panel will act as an additional input for the CACP while deciding the MSP and bonus of pulses and will come out with a clear and well-defined policy on pulses pricing taking into account international market scenario and domestic supplies over a period of time.
It is expected to supplement not complement CACP’s efforts. CACP with its mandate to decide to MSPs of 27-odd crops cannot give individual attention to all and it is here that Subramanium panel is expected to fill in.
With the Central government planning to regularly purchase around 2 million tonnes of pulses from the average production of around 17-19 million tonnes at market rates a strong and consistent MSP mechanism is needed to give clear price signals to farmers. Because, at present government fixed MSPs for pulses are far lower than the prevailing market rates making them virtually meaningless.
