Government Removes Procurement Ceiling For Certain Pulses Under Price Support Scheme
The assured procurement at remunerative prices will help motivate the farmers to enhance sowing area to enhance production.
The Union government has removed procurement ceilings on some pulses in a move to curb inflationary pressures and boost supply,
The procurement ceiling of 40% for tur, urad and masoor under the Price Support Scheme operations for 2023-24 have been removed, according to a release on Tuesday.
The decision assures the procurement of these pulses from farmers at the minimum support price without ceilings.
The assured procurement of these pulses by the government at remunerative prices will help motivate the farmers to enhance sowing area in respect of tur, urad and masoor in the upcoming kharif and rabi sowing seasons in order to enhance the production, it said.
This is a good move and is intended at curbing potential inflationary pressures, according to Teresa Jon, economist at Nirmal Bang Institutional Equities.
However, procurement mechanisms for pulses are not as strong as cereals and mostly conducted through states, Jon said. Although, there will be no cap on procurement, the efficacy will depend on the farmers' trust in the state procurement mechanism, she said.
On June 2, the government had imposed stock limits on tur and urad by invoking the Essential Commodities Act, in order to prevent hoarding and unscrupulous speculation and also to improve affordability to consumers.
The stock limits have been made applicable to wholesalers, retailers, big chain retailers, millers and importers. It has also been made mandatory for these entities to declare the stock position on the portal of the Department of Consumer Affairs.