Govt looks to rein in dal prices through imports, buffer stock

New Delhi: With prices soaring to as high as Rs 170 per kg, the government today went into a huddle at the top level and decided to import pulses from Myanmar and Africa and beef up buffer stocks to check the spike.

With government under attack, Food Minister Ram Vilas Paswan sought to shift the blame on states saying they are equally responsible for keeping the prices of essential commodities under control.

At the high-level meeting, Finance Minister Arun Jaitley discussed ways to control prices with Agriculture Minister Radha Mohan Singh, Food Minister Ram Vilas Paswan, Commerce Minister Nirmala Sitharaman and Urban Development Minister M Venkaiah Naidu.

The government is concerned about the prices of pulses ruling at a high of Rs 170 per kg and a spike in tomato prices to Rs 100 a kg.

The reasons for the spike in prices and possible options available to check the same were discussed at the meeting, sources said, adding the supplies were short of demand about 70 lakh tonnes.

Among the options discussed were releasing more pulses from the buffer stock whenever there is a demand from the states as well as importing pulses from Myanmar and Africa to deal with the price rise.

“In the meeting, the pulses issue was discussed in detail. Our department was told to procure more pulses for buffer stock,” Food Minister Ram Vilas Paswan said.

This year’s target is to procure 1.5 lakh tonnes of pulses for buffer stock creation and so far, 1.15 lakh tonnes have been purchased during the kharif and rabi seasons, while the rabi procurement is still going on, he added.

To boost domestic supply, Paswan said, “The Finance Minister also said that imports via public and private agencies should be strengthened to meet the deficit.”

The government has decided to send a team immediately to pulses-growing nations like Myanmar and Africa to explore government-to-government imports, the Food Minister said.

The meeting also discussed ways to better procurement, and increase in sowing area, taking action against hoarders, and improve transparency in functioning of private importers.

The meeting, which was also attended by secretaries to the department of economic affairs and revenue as well as Chief Economic Advisor, was informed that Kendriya Bhandar, Safal and other government agencies were selling the staple tur and urad dal at Rs 120 per kg from their outlets.

The government has already released 10,000 tonnes of pulses from buffer stock to deal with the situation.

The government’s twin strategy comprises boosting supply through its newly-created buffer stock and imports.

Already, India has submitted a draft agreement for import of tur from Myanmar on government-to-government route. Many African countries have also evinced interest to supply lentils to India.

Despite several measures, pulses are still ruling high at over Rs 170 per kg in most parts of the country due to a widening demand-supply gap following two successive droughts.

Paswan, who launched sale of tur and urad at a subsidised Rs 120 per kg through mobile vans of co-operative NCCF in the national capital today, said: “If prices rise despite this move, the Centre is not responsible. In a federal structure, states have equal responsibility in controlling prices.”

Passage of the GST Bill and creation of the national common agriculture market would address the price rise issue to a large extent, he hoped.

The National Cooperative Consumers’ Federation of India (NCCF) is the third player after Mother Dairy’s Safal and Kendriya Bhandar that will be selling tur and urad at the subsidised rate in the national capital.

Asserting that the Centre is “serious” about the price rise issue, Paswan said, “We have created a buffer stock and have asked states to place their requirement for retail distribution. However, not many states have shown interest.”

The Centre is offering to state governments the un-milled tur and urad from the buffer stock at Rs 66 per kg for retail distribution at not more than Rs 120 in order to provide relief to consumers.