The Centre today approved tenders for import of 7,500 tonnes of pulses -- mainly tur and urad -- in order to boost domestic supply and check price rise.
A decision in this regard was taken at the meeting of the Price Stabilisation Fund Monitoring Committee (PSFMC) headed by Consumer Affairs Secretary C Viswanath.
This was the first meeting after the Price Stabilisation Fund (PSF) was transferred to the consumer affairs ministry from the agriculture ministry recently. Senior officials from the agriculture ministry and MMTC, among others, were present.
"The committee approved MMTC tenders for import of 2,500 tonnes of tur and 5,000 tonnes of urad," a senior consumer affairs ministry official said.
Already, MMTC has contracted import of 11,000 tonnes of tur and 7,500 tonnes of urad, of which around 2,000 tonnes of tur have reached Chennai and Mumbai ports while over 4,000 tonnes of tur have been shipped, the official added.
Other than for imports, the government is using PSF for creating a buffer stock of pulses and other essential food items so as to intervene in the market to check prices.
The government has purchased 50,000 tonnes of tur and urad in 2015 kharif season and is in the process of buying masoor and other dals in the rabi season.
The state governments have been asked to stock up pulses from the central buffer stock to ensure there is adequate availability and curb price rise.
Retail prices of pulses are still ruling high at Rs 160-170 per kg in most places even as the rates have cooled from the peak of Rs 210 per kg last year, following a slew of measures, including crackdown on hoarders.
Despite several steps, pulse prices are expected to remain firm this year because production is unlikely to increase significantly because of drought for the second straight year.
As per the agriculture ministry's second estimate, pulse production is estimated at 17.33 million tonnes (mt) in 2015-16 crop year (July-June), marginally higher than the previous year's production of 17.15 mt.
India is the world's largest producer of pulses, but its domestic demand outstrips production. The shortfall is met through imports.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
