The Government of India has increased its procurement of tur (pigeon pea) this year. As of April 13, 2025, the Ministry of Agriculture reported 3,40,000 tonnes procured under the Price Support Scheme (PSS). This initiative aims to stabilise market prices and ensure farmers receive fair compensation.
Overview of Price Support Scheme
The Price Support Scheme (PSS) is a government programme designed to protect farmers from volatile market prices. It guarantees a minimum support price (MSP) for certain agricultural commodities. When market prices fall below the MSP, the government steps in to purchase the produce. This helps maintain farmers’ income and encourages agricultural productivity.
Current Procurement Statistics
As of mid-April 2025, the government has sanctioned 13.22 lakh tonnes of tur procurement across nine states. Karnataka leads with 1,30,000 tonnes, benefiting from a state bonus of ₹450 per quintal above the MSP of ₹7,550 per quintal. Other states contributing to tur procurement include Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Telangana, and Uttar Pradesh.
Chana and Other Pulses Procurement
In addition to tur, the government has procured 17,000 tonnes of chana (gram), mainly from Telangana and Madhya Pradesh. Despite a sanction for 27 lakh tonnes, chana procurement has been sluggish due to domestic prices exceeding the MSP of ₹5,650 per quintal, following a 10 per cent import duty. Furthermore, masur (lentil) procurement has reached 28,700 tonnes, while moong (green gram) procurement stands at 3,000 tonnes.
Government Goals and Challenges
The government aims to maintain a buffer stock of 10 lakh tonnes of tur to manage market prices effectively. In the 2025 Budget, it committed to 100 per cent procurement of tur, masur, and urad relative to state production through central agencies until 2028-29. This strategy seeks to achieve self-sufficiency in pulses production. Despite increased domestic output, India still relies on imports to fulfil its pulses demand.
Impact on Farmers and Market Dynamics
The PSS provides a safety net for farmers, ensuring they are compensated fairly even when market prices fluctuate. This scheme not only stabilises farmers’ income but also encourages them to invest in agricultural practices. However, challenges remain, including the need for efficient procurement processes and addressing the gap between domestic production and consumption.
Future of Pulses Production in India
With the government’s commitment to enhancing pulses production, the future looks promising. Continued investment in agricultural technology and infrastructure is essential. The focus will be on reducing dependency on imports and achieving self-sufficiency in pulses.
Questions for UPSC:
- Examine the impact of the Price Support Scheme on farmers’ livelihoods in India.
- Discuss the challenges faced by the Government of India in achieving self-sufficiency in pulses production.
- Critically discuss the role of import duties in shaping domestic agricultural markets.
- With suitable examples, discuss the significance of buffer stocks in stabilising agricultural prices.
Answer Hints:
1. Examine the impact of the Price Support Scheme on farmers’ livelihoods in India.
- The PSS guarantees a minimum support price (MSP), ensuring farmers receive fair compensation for their produce.
- It acts as a safety net during price fluctuations, stabilizing farmers’ incomes and reducing financial risks.
- Farmers are encouraged to invest in agricultural productivity due to assured returns, promoting sustainable farming practices.
- The scheme has led to increased procurement, with contributions from states like Karnataka, benefiting local economies.
- However, challenges such as slow procurement processes and disparities in state bonuses may affect overall effectiveness.
2. Discuss the challenges faced by the Government of India in achieving self-sufficiency in pulses production.
- Despite increased domestic production, India still relies heavily on imports to meet pulses demand, indicating a production gap.
- Inconsistent weather patterns and climate change impact agricultural output, affecting yield stability.
- Low MSP relative to market prices discourages farmers from cultivating pulses, leading to lower production levels.
- Infrastructure issues, such as inadequate storage and transportation, hinder efficient distribution and procurement processes.
- Market access for smallholder farmers remains limited, affecting their ability to participate in government schemes effectively.
3. Critically discuss the role of import duties in shaping domestic agricultural markets.
- Import duties are intended to protect domestic producers by making imported goods more expensive, thus encouraging local consumption.
- However, high duties can lead to supply shortages if domestic production does not meet demand, causing price spikes.
- In the case of chana, a 10% import duty has slowed procurement as local prices exceed MSP, affecting the market dynamics.
- Import duties can also lead to trade tensions and retaliatory measures, impacting overall agricultural trade policies.
- Balancing import duties is crucial to ensure domestic farmers are supported while maintaining market stability and consumer access.
4. With suitable examples, discuss the significance of buffer stocks in stabilising agricultural prices.
- Buffer stocks act as a reserve to be released in times of price volatility, helping to stabilize market prices for essential commodities.
- The government’s aim to maintain a buffer stock of 10 lakh tonnes of tur illustrates this strategy to manage supply and demand effectively.
- During periods of low production or high demand, buffer stocks can prevent price hikes, ensuring affordability for consumers.
- Historical examples, such as rice and wheat reserves in India, show how buffer stocks can prevent food inflation and ensure food security.
- However, effective management and timely release of buffer stocks are essential to maximize their impact on market stabilization.
