JOIN USMany recommendations of the committee headed by Chief Economic Advisor Arvind Subramanian on pulses are not new and have been widely discussed in public forums and the media. The committee was set up in the wake of the runaway rise in the prices of pulses which still maintain high levels, though they have slightly eased now. But the relief is yet to benefit the consumers because the decline in wholesale prices is not fully reflected in retail prices. The committee has recommended measures in terms of both government action and policies. They include creation of buffer stock, offer of incentives and input subsidies to farmers to grow pulse crops and promotion of research to develop high-yielding pulse varieties. The committee has also proposed measures like removal of stock limits and export bans which are imposed in times of shortage. In certain situations, they distort the market and become counterproductive.
The offer of higher minimum support prices encourages farmers to cultivate pulses in place of other crops. The government has tried this and it has shown positive results. It may also be accompanied by a stoppage of increase or even a cut in the MSP of paddy. There is excess production of rice and wheat in the country. The incentives will help pulse crops, which are now grown in dry regions, to shift to irrigated areas. Timely and adequate procurement, as proposed by the committee, is equally important. At present, though the market price is less than the MSP, there is no procurement in some areas. The committee wants a buffer stock of at least 2 million tonnes and an agency other than the Food Corporation of India to undertake procurement. It does not oppose the entrusting of this task to private parties, too. However, it sho-uld be on the basis of open bidding, and the rules relating to buffer building and maintenance should be fair and transparent. Lifting of export bans and stock limits will encourage farmers and traders in an environment of adequate availability of pulses. It is also necessary that farmers get their MSPs through direct transfers, especially if other agencies are involved in procurement. The proposals to take pulses out of the Agricultural Produce Marketing Committees’ purview and a review of the Essential Commodities Act also call for consideration.
Some of the proposals can be immediately implemented and others in the medium and long-term. Yet others demand more study and scrutiny. But this is the right time to start implementation because the pulse output in the kharif season is expected to be very high. The trend should be supported through government action.