The Centre has asked the agriculture ministry to relax the Price Support Scheme (PSS) norm requiring government-procured pulse stocks to be disposed of within nine months, as it seeks to preserve inventories amid emerging El Nino-related weather risks that could hit kharif production and fuel food inflation.
The Price Support Scheme (PSS) is a procurement mechanism under which the government buys pulses, oilseeds and copra from farmers at the Minimum Support Price (MSP) when market prices fall below MSP, primarily to protect farmers’ incomes.
An internal communication in this regard, seen by HT, shows that the Department of Consumer Affairs (DoCA) requested the Department of Agriculture and Farmers Welfare to exempt the 2025-26 tur and chana stocks from the existing disposal timeline so that they can be retained to meet any supply shortfall in the coming months. The move, as per the letter, would strengthen preparedness against production losses arising from adverse weather while ensuring adequate availability of pulses at affordable prices.
According to the letter sent to agriculture secretary Atish Chandra last week, consumer affairs secretary Nidhi Khare said the department has been closely monitoring the availability and price situation of pulses during the ongoing kharif season. Preliminary assessments indicate “emerging El Nino-induced weather-related uncertainties” that could influence acreage and crop performance in some regions, although the overall implications for production are yet to become clear.
The letter said the government has already transferred 300,000 tonnes of tur, 500,000 tonnes of chana and 50,000 tonnes of urad from procurement under the PSS to the Price Stabilisation Fund (PSF) buffer this year, involving stocks worth ₹5,882.5 crore at MSP. It added that further transfers may become difficult because of funding constraints.
{{/usCountry}}The letter said the government has already transferred 300,000 tonnes of tur, 500,000 tonnes of chana and 50,000 tonnes of urad from procurement under the PSS to the Price Stabilisation Fund (PSF) buffer this year, involving stocks worth ₹5,882.5 crore at MSP. It added that further transfers may become difficult because of funding constraints.
{{/usCountry}}According to a senior government official, the ministry currently holds about 4.5 million tonnes of total pulses stock including about 1.1 million tonnes of tur, 2.3 million tonnes of chana, 650,000 tonnes of masur, 70,000 tonnes of urad and 370,000 tonnes of moong.
PSF is a buffer stock mechanism under which procured stocks are held and released into the market when needed to augment supplies and curb price spikes, thereby protecting consumers.
DoCA also said that decisions on the open market sale of pulses and future procurement under the PSS may need to be reviewed in light of the evolving climatic situation.
The move comes against the backdrop of slower kharif pulse sowing compared with last year, raising concerns over production if rainfall turns adverse during the remainder of the monsoon. Pulses acreage as of Friday was down 7.5% year-on-year with tur area down nearly 12%.
“Area under cultivation for pulses is lower than last year. As crops of tur and moong are rain dependent, they remain vulnerable. The potential to contribute to inflation is high and hence it is prudent to have such policies in place. This addresses the contingency of having to augment supplies if crops fail,” said Madan Sabnavis, Chief Economist at Bank of Baroda.