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MSP – The Driving Force of Pulses Production

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By N Ramesh, Executive Director, NAFED

N Ramesh

This pandemic situation has made us learn one great lesson, to be “AtmaNirbhar” more so in case of Food. Imagine the situation to scramble for food when everything is shut down including avenues for import. Most of countries which had food grains have declared an export embargo. India is one such rare country who not only fed its citizens wholesome and for Free, but also gave food to whoever asked for it by way of humanitarian aid and through export to other countries in need.

Even before a week into lockdown, the Government announced free supply of grains Rice/Wheat and also provided one Kg of pulse each to about 20 crore family. From a situation of acute scarcity of pulses in 2015-16 when country witnessed unprecedented shortage and inflation in price of pulses due to successive two year droughts, to providing free pulses to most of the citizens in the country in a never before seen times. How did this happen? Where this self-sufficiency did come from.

The crisis for pulses during 2015-16 was not an wasted opportunity, but set forth an ambitious and desirable outcome to make the country self sufficient in its pulses production. Government acted on Supply, demand and regulatory fronts with equal emphasis. The twin factors critical to immediate increase in pulses production was the Minimum Support Price (MSP) and procurement from farmers directly at MSP. Through the National Food Security Mission (NFSM) launched in 2016-17 additional area coverage of pulses was brought under. Government aimed at increasing productivity and production of pulses in the country by distribution of seed mini-kits, subsidy on production of quality  seed, creation of 150 pulse seed hubs, involving ICAR institutes and State Agriculture Universities for cluster frontline demonstrations.

Government increased MSP on pulses by 8-16% in 2016-17. Elaborate arrangements were made for procuring of pulses from farmers under the Price Support Scheme (PSS). The Government Guarantee for making procurement operation was increased manifold. Foreseeing a need to have strategic buffer of pulses, 20 lakh MT buffer stock of pulses was formed through the Price Stabilisation fund (PSF) with a corpus of more than Rs 10,000 crore. The State Governments particularly those which are leading in pulse production like Madhya Pradesh, Rajasthan, Maharashtra, Karnataka worked in close coordination for procurement of pulses.

Farmers were greatly enthused by the attractive MSP and ensuring its implementation by procurement. There was 42% increase in production of pulses unheard of in any other category of food articles and not achieved such jump in production in any other country in a span of one year. National Agricultural Cooperative Marketing Federation Of India Ltd. (NAFED) played a pivotal role in procurement under PSS and PSF by procuring 8.7 lakh MT in 2016-17. This level of procurement of pulses in this year was almost the same as that procurement made in last 15 years combined.

Government continued its focus on pulses production in 2017-18. MSP on pulses saw increase of 7-10%. To provide impetus to domestic production import of pulses was suitably calibrated from time to time. Import policy and customs duty was tuned to give priority to farmers of India. The favourable monsoon and continued enthusiasm in farmers to make India self sufficient in pulses resulted in highest ever production of pulses in the country at 254 lakh MT. Procurement of pulses from farmers was more than doubled to about 20 lakh MT. During 2018-19 total procurement of pulses was more than twice that of previous year at about 42 lakh MT. Even in the lockdown period due to pandemic Government continued to support farmers by implementing the MSP and procuring about 23 lakh MT of pulses and 8.2 lakh Mt of oilseeds directly from farmers at MSP.

While announcing the MSP for Kharif 2018 Government fulfilled the longstanding demand and made an unbelievable promise to provide MSP equal to 1.5 times the production cost. MSP of Moong was increased by 25% and the result was an increase in production by 22%. Similar is the case of Gram where the increase in production is in line with MSP increase.  Farmers’ responding to MSP increase by producing more Rice and Wheat is a well-documented story. MSP increase is a strong signal to the farmer that market prices are going to increase and hence a decisive factor in deciding which crop to grow depending the soil type and other environmental factors. This direct and strong correlation between MSP and production holds good for pulses also .

The regions where pulses are grown are rainfed areas. If not for pulse, cotton or soyabean may be grown in these areas. Continuously increasing MSP of pulses coupled with robust procurement operations under PSS or PSF have given the farmers the much needed breather in an uncertain agri-climatic condition. The otherwise fallow land is now being used to take two pulse crops (Kharif and Rabi) in most of the regions. Better utilisation of land resource and the increased income from two crops coupled with soil productivity increase and fodder to animals has made the pulses find resonance with farmers. A content farmer is the face of the prosperous nation as Samuel Johnson says “Agriculture not only gives riches to a nation, but the only riches she can call her own”.

If rain Gods willing, Indian farmer can do wonders and has done so earlier and continuing to do so. MSP is more than a catalyst to achieve this wonder. Starting with Rice, Wheat, Milk, Cotton, Sugar, Vegetables, Fruits, Fish etc. Pulses story is another chapter in glorious book of accomplishments by Indian farmers.

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