India Creating Pulsed Buffer Stockpile

DELHI - Dec 1/15 - SNS -- India's government is accumulating a modest quantity of kharif season pulses for use as buffer stocks. Pulses accumulated under the plan will be disposed off within one year of the end of procurement period.

Procurement of Tur and Urad for the buffer stock in the current Kharif marketing season by National Agriculture Cooperative Marketing Federation of India (NAFED), Small Farmers Agri-Business Consortium (SFAC) and Food Corporation of India (FCI) at prevailing market prices is being done with assistance from Price Stabilization Fund (PSF).

NAFED and SFAC have been directed to procure 30,000 metric tons (MT) of Tur and 10,000 MT of Urad at an estimated cost of Rs.350 crore or U.S. $52.5 million, while Rs.50.0 crore or $7.5 million have been released to FCI for undertaking the procurement.

The procured stocks will first be allocated to States based on their demand. In case States do not lift either full or a part of the procured pulses, these pulses will be offered by Department of Consumer Affairs (DoCA) to agencies like Kendriya Bhandar, Mother Dairy for sale through their outlets.

Alternatively, these pulses may be sold in open market on National Commodity and Derivatives Exchange (NCDEX) or any other electronic platform in a transparent manner.

Discussing other recent initiatives, India's agriculture department said the Metals and Minerals Trading Corporation of India (MMTC) with assistance from the PSF tendered to import 5000 MT of Tur dal.Of the total, 4927 MT has been received at an average price of $1078 MT. The landed cost for the imported Tur dal worked out to Rs.77/kg. or $1155 MT which was offered to the States at approximately Rs.69/kg or $1035 MT.