India Boosts Pulse Buffer to 800,000 MT

DELHI - Jun 16/16 - SNS -- India's government has decided to increase the quantity of pulses it will buy to create a buffer stock from 150,000 to 800,000 metric tons (MT).

Pulses are being bought directly from farmers under the country's MSP (minimum price support) program as well as from exporters in Myanmar, Canada, Australia and other origins.

The decision to increase the buffer stock was made as retail prices for urad or black matpe bean approached Rs.200 per kilogram or U.S. $2972 MT. Retail prices occupy a wide range, with gram or chickpea sitting at just Rs.93 kg or $1382 MT and red lentil at Rs.105 kg or $1561 MT.

Pulses from the buffer stock are to be sold at a retail price of Rs. 120 kg or $1742 MT. The thought is that the availability of higher valued pulses at a highly subsidized price will help tame consumer price inflation for all pulses.

However, individual states are not showing much eagerness to participate in a scheme which would see them buy whole pulses from the buffer stocks at Rs. 66 kg or $981 MT and sell the hulled and split product for just Rs. 120 or $1742 MT. Less than 11,000 MT have been used in the manner by states such as Andhra Pradesh, Telangana and Tamil Nadu.