Lok Sabha Question No. 312 (UNSTARRED), answered on 2015-12-01
Subject: Procurement of Pulses by NAFED
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: DHARMENDRA YADAV, SHIVAJI ADHALRAO PATIL, Shrirang Appa Barne, ANANDRAO  ADSUL

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO. 312

TO BE ANSWERED ON THE 1 ST  DECEMBER, 2015

## PROCUREMENT OF PULSES BY NAFED

312.   SHRI DHARMENDRA YADAV: SHRI ADHALRAO PATIL SHIVAJIRAO: SHRI SHRIRANG APPA BARNE: SHRI ANANDRAO ADSUL:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ षि एवं ककसान कल्याण मंत्री be pleased to state:

- (a) whether the Union Government has decided to set up buffer stock of pulses from this year kharif marketing season;
- (b) if so, the details thereof;
- (c) whether  the  Union  Government  has  authorised  the  National  Agricultural  Cooperative Marketing Federation of India (NAFED) to procure 30,000 tonnes of tur and 10,000 tonnes of urad from farmers at prevailing market rates and sell in the open market;
- (d) if so, the details thereof;
- (e) whether it is a fact that landed cost of tur is  around Rs. 69 per kg while the minimum support price is about Rs. 46.25 per kg;
- (f) if so, the steps taken by the Union Government to safeguard the interest of the farmers; and
- (g) the steps taken by the Union Government to meet the short supply of pulses?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ षि एवं ककसान कल्याण मंत्राऱय में राज्य मंत्री (SHRI  MOHANBHAI  KUNDARIA)

(a) to (d): Yes,  Madam.  The  Union  Government  has  decided  to  set  up  buffer  stock  of pulses. Procurement of Tur and Urad for the buffer stock in the current Kharif marketing season by  National  Agriculture  Cooperative  Marketing  Federation  of  India  (NAFED),  Small  Farmers Agri-Business  Consortium  (SFAC)  and  Food  Corporation  of  India  (FCI)  at  prevailing  market prices is being done with assistance from Price Stabilisation Fund (PSF). NAFED and SFAC have been directed to procure 30,000 MT of Tur and 10,000 MT of Urad at an estimated cost of Rs.350 crore, while Rs.50.0 crore have been released to FCI for undertaking the procurement. The procured stocks will first be  allocated  to  States based  on their demand. In case States do

not lift either full or a part of the procured pulses, these pulses will be offered by Department of Consumer Affairs  (DoCA)  to  agencies  like  Kendriya  Bhandar,  Mother  Dairy  for  sale  through their outlets.  Alternatively, these pulses may be sold in open market on National Commodity and Derivatives Exchange (NCDEX) or any other electronic platform in a transparent manner. The  procured  pulses  will  be  disposed  off  within  one  year  of  end  of  procurement  period  to consumers

(e) & (f): As a price stabilisation measure to control rising prices of pulses in 2015, it was decided  to  import  pulses  through  Metals  and  Minerals  Trading  Corporation  of  India  (MMTC) with  assistance from the PSF. MMTC floated a tender for import of 5000 MT of Tur dal and received 4927 MT of Tur dal @ 1078 US$ per Metric Tonne (MT) and at a total cost of Rs.38.43 crore. The landed cost for the imported Tur dal worked out to Rs.77/kg. which was offered to the States at approximately Rs.69/kg.

While import was undertaken only as a short term price stabilisation measure, however, to  safeguard  the  interest  of  farmers  the  Government,  on  the  recommendations  of  Cabinet Committee  on  Economic  Affairs  and  on  the  recommendation  of  Commission  for  Agricultural Costs  and  Prices  (CACP),  announced  Minimum  Support  Prices  (MSPs)  for  Kharif  Crops  of 2015-16 Season and keeping in view the huge deficit of pulses, the Cabinet made an exception and  decided  to give a bonus  of Rs.200  per  quintal  for  pulses  over  and  above  the recommendations  of  the  CACP.  This  is  expected  to  give  a  strong  price  signal  to  farmers  to increase  acreage  and  invest  for  increase  in  productivity  of  pulses.  However,  presently,  the wholesale prices for pulses like Tur and Urad are much above the MSP.

(g): The  Union  Government  took  a  number  of  steps  to  meet  the  short  supply  of  pulses including extension of 'Zero import duty' on all pulses (except gram and lentils) without an end date.  In  case  of  gram  and  lentils  "zero  import  duty"  has  been  extended  only  upto  31 st December, 2015. The Government imported 5000 MT of Tur through MMTC with support from PSF. The Government is also creating a buffer stock of pulses.

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