Government Looks To Rein In Prices Of Pulses Through Imports, Buffer Stock

New Delhi: Alarmed by the rising prices of essentials like pulses and tomatoes, the government today decided to boost supply through its newly-created buffer stock and imports.

Finance Minister Arun Jaitley today held a high level meeting with the agriculture, food, urban development and commerce ministers. Secretaries of these ministries, along with finance ministry, were present at the meet.

Also present, Nripendra Mishra, the Principal Secretary to Prime Minister Narendra Modi. The Prime Minister's Office's participation in the meet indicates the sense of worry in the government due to the sharp rise in prices which seem set to go further up as there are no quick fix remedies available.

During the meet, the biggest concern was over pulses. The production of pulses, due to the last two deficient monsoons, has not been enough to dent the supply side shortages. India consumes 22 million tonnes of pulses each year while the production is around 17 million tonnes.

During the meet it was decided that the procurement of pulses from local producers (farmers) will continue to ensure a healthy buffer stock. The government maintains a 1 million tonnes buffer stock of pulses at all times via local procurement and imports.

Commerce Minister Nirmala Sitharaman's visit to Myanmar recently has paid dividends on the pulses front. A government-to-government agreement has been signed for import of pulses from the neighbouring country.

On the tomato front, whose prices have hit Rs 100 in Hyderabad, the government plans to improve the supply chain. A government official said, "There are too many variations in prices of tomato as one moves between the place of production to the point of consumption. The government plans to improve the supply side constraints."

Union Food Minister Ram Vilas Paswan informed the participants in the meeting that the price rise in tomato was a "seasonal" factor and the commodity cannot be stored due to short shelf-life unlike wheat and rice.

To ease the pulses situation, importers have been given relief from the stock holding limits. The government has fixed limit to curb hoarding by profiteers. But the importers protested as stock limits flies against the idea of getting more pulses. That's why the government will keep an eye on importers and ask them to release pulses speedily instead of making them store less.