Budget 2024: Govt likely to announce steps to enhance pulse production

Union Budget 2024: Finance Minister Nirmala Sitharaman will present the Budget in the Lok Sabha on July 23

The government is expected to announce a series of initiatives in the upcoming Union Budget to enhance domestic production of pulses and oilseeds. These measures include full procurement of three varieties of pulses at the minimum support price (MSP). This strategy aims to reduce import dependence, promote crop diversification, and boost farmers' incomes, according to a report by Financial Express.

Currently, the cultivation area for pulses and oilseeds is a small fraction of the country's primary crop regions, limited to just 55 districts. Although the current price support scheme allows the government to purchase up to 40 per cent of the marketable surplus of three pulse varieties — urad, arhar, and masoor — actual procurement has been minimal.

 

Officials have indicated that a pilot programme for a price deficiency payment system will be introduced for pulses and oilseeds. This system will compensate farmers for the difference between market prices and the MSP, the report said.

India currently imports 58 per cent of its annual edible oil needs and 15 per cent of its pulses consumption.

Due to a decrease in production and strong demand, the prices of various pulses — such as tur, urad, and chana — are currently above the MSP.

Govt to continue purchasing 100 per cent of pulses

Agriculture Minister Shivraj Singh Chouhan recently affirmed the government's commitment to purchasing 100 per cent of urad, arhar, and masoor pulses, which the country imports in large quantities, in the coming season.

Regarding oilseeds, Union government agencies, in collaboration with state departments, have bought 1.2 million tonnes of mustard from farmers at the MSP under the Price Support Scheme (PSS) in the current season. India imported a record 16.47 million tonnes of edible oils, primarily palm, soybean, and sunflower, during the 2022-23 oil year (November-October), facilitated by reduced import tariffs.

Agencies like the farmers’ cooperative National Agricultural Cooperative Marketing Federation of India Ltd (Nafed) and the National Cooperative Consumers’ Federation of India (NCCF) have begun registering urad and tur farmers for MSP procurement, following increased sowing due to adequate monsoon rains in key growing states.

Despite registering with these agencies, farmers retain the freedom to sell their produce at market prices higher than the MSP, the report stated.

The government emphasised that the area under pulse cultivation, particularly for tur and urad varieties, has expanded by over 50 per cent in the current kharif season. The priority is to achieve self-sufficiency within the next few years through both area expansion and assured procurement from farmers.

Agri commission calls for increase of pulse cultivation

In its report on price policy for rabi crops for the 2024-25 marketing season, the Commission for Agricultural Costs and Prices (CACP) highlighted that pulse production in India is highly concentrated in a few states and districts, and is subject to significant fluctuations due to biotic and abiotic stresses.

The CACP has recommended increasing the cultivation of pulses, particularly tur, urad, and masoor, in rice-fallow areas in eastern and southern states. The report notes that Maharashtra, Karnataka, and Uttar Pradesh together produce more than two-thirds of the country's tur, and 25 districts account for 60 per cent of pulse production.

An official note estimates annual pulse production to be between 26 and 27 million tonnes, with more than 4.5 million tonnes of tur, urad, and masoor imported in FY24, compared to 2.45 million tonnes in 2022-23.

To support domestic supplies and control price spikes, the government extended duty-free imports of tur, urad, and masoor until the end of FY25 in December 2023. Despite this measure, inflation in the pulses and products category rose to 16.07 per cent last month, continuing a year-long trend of double-digit increases.

Monsoon rains key for pulse production

Trade sources indicate that favourable monsoon rains in key pulse-growing states such as Karnataka, Maharashtra, Madhya Pradesh, Rajasthan, and Uttar Pradesh have boosted sowing, potentially leading to an increase in kharif pulse production of tur, urad, and moong, which could help reduce prices, the report said.

Earlier this year, Cooperation Minister Amit Shah stated that India aims to achieve self-sufficiency in pulse production by 2027.