BOOSTING OF PULSE PRODUCTION (Syllabus: GS Paper 3 – Economy)

News-CRUX-10     26th December 2023        

Conext: To ensure that farmers get remunerative prices and build up the buffer, the government will soon start procurement of tur dal which is currently ruling above the minimum support price (MSP) through a ‘dynamic pricing’ formula.

Boosting Domestic Pulse Production for Self-Reliance

  • Signaling Increased Production: Allowing tur dal to be sold above the Minimum Support Price (MSP) acts as a signal to farmers, encouraging them to enhance production and consequently reducing the country's dependence on imports.
  • Replication for Urad Dal:
  • A similar procurement mechanism will be applied to urad dal, ensuring consistency in the effort to bolster domestic pulse production.
  • Pulse Inflation Statistics: In November, inflation in the pulses category surged to 20.23%, up from 18.7% in October. Notably, arhar pulses experienced a substantial price increase of 42%.
  • Tur Dal Imports: In the fiscal year 2022-23, India imported 0.9 million tonnes (MT) of tur dal. Notably, in the current fiscal (April-October), imports have already exceeded 0.45 MT.
  • Major Imported Pulses: Tur, urad, and masoor (lentils), predominantly sourced from countries such as Mozambique, Malawi, Tanzania, Myanmar, Canada, and Australia.

.Minimum Support Price (MSP)

  • About: MSP serves as a government-established rate at which crops are bought from farmers, providing them with protection against significant declines in agricultural prices.
  • Announced by: The Commission for Agricultural Costs & Prices (CACP) recommends MSPs for 22 mandated crops and Fair and Remunerative Prices (FRP) for sugarcane.
  • Origin of Concept: MSP was initially introduced in 1966, drawing inspiration from the Green Revolution.
  • Crops covered: 7 types of cereals (paddy, wheat, maize, bajra, jowar, ragi and barley)