The pilot deal is part of a plan to achieve self-sufficiency in pulses by expanding cultivation in states where farmers are traditionally not inclined to grow pulses, a senior official aware of the development told ET.
As per the deal, signed between farmers and the National Cooperative Consumers’ Federation of India (NCCF), the farmers will grow tur and masur on their land and the agency will procure a portion of their produce at minimum support price (MSP) or market price, whichever is higher, for the government’s buffer stock.
“The quantity of procurement will not be much vis-a-vis the buffer stock this year, but we expect it to increase in the coming years when we are able to bring in more area under contract farming,” the official said.
At present, despite the government’s commitment to procure the entire produce of pulses growers who have registered themselves, government agencies are not able to meet the procurement targets because of higher prices offered by private players as a decline in production has pushed up prices.
Pulses inflation has been high since last year as erratic rainfall reduced the crop size for two consecutive years, forcing the government to remove import restrictions to increase domestic supply.The government has promised farmers to procure unlimited amounts of tur, urad and masur at MSP or market price, whichever is higher, provided they register on its portal.India’s retail inflation shot back to a nine-month high of 5.5% in September after two months of relief, due to a resurgence in food inflation that stood at 9.24% in September after hovering below the 6% mark through July and August, official data showed.
Price rise of pulses, though, retreated from a 10%-plus inflation pace for the first time in 16 months to 9.81% last month on account of good sowing and prospect of higher produce.
The cost of a home-cooked vegetarian thali surged 11% year on year in September, driven by rising vegetable and pulses prices, as per a report by the rating agency Crisil.
The prices of pulses, which account for 9% of the vegetarian thali cost, rose by 14% due to a drop in production in 2023. This led to a lower opening stock this year, further contributing to the uptick in thali prices, the report said.
The production of pulses declined in the last few years even as demand has increased on account of higher disposable incomes and a larger population.
From 27.3 million tonnes in FY22 the production of pulses fell to 26 million tonnes in FY23 and 24.5 million tonnes in FY24, according to agriculture ministry data.
Import of pulses has increased significantly in recent years, to 4.7 million tonnes in FY 2024, according to government data. The current annual consumption of pulses in India is estimated to be around 27 million tonnes.
India imports tur from Mozambique, Tanzania, Malawi and Myanmar, and masur from Canada, Australia, Russia and Turkey.