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Current Affairs

Government’s pulses policy

Date: 16 June 2021 Tags: Basics of Economics

Issue

The central government has announced a revised rate in minimum Support Price of pulses in order to increase domestic production.

 

Background

India is one of the largest consumers of pulses. The domestic production cannot sustain the demands. The government imports large amounts of this commodity.

 

Details

  • The government has undertaken a special initiative that works towards attaining self-sufficiency in pulses. Free seeds have been distributed to achieve this objective.

  • The increase in MSP for pulses is strange considering the measures taken to control prices of pulses few months back.

  • India imports pulses such as arhar, urad, moong and tur. This is done to control the prices of the commodity in open market.

  • To control the prices further, the government gave permission to freely import the pulses. This measure was unique because earlier only licensed traders could import.

  • To control the demand-supply mismatch, the government had asked all the Chief Secretaries of all states and UT to submit the available stocks of pulses with them.

  • This was undertaken under the Essential Commodities Act, 1966, which the government had amended recently. It was the final step before imposing stock limit.

  • At present conditions, farmers are requesting government to not make efforts to reduce prices as many sowers will move towards alternative crops.

 

Pulses production in India

  • The top five states in India in pulses production are Madhya Pradesh, Rajasthan, Maharashtra, Uttar Pradesh and Karnataka.

  • India imports majority of pulses from Canada, Myanmar, Mozambique, Russia and Tanzania. The imports are made by private entities.

  • Pulses that are part of MSP regime are moong, tur, moong, urad and lentil. They have a very attractive rate for encouraging farmers.