India will create a buffer stock of pulses, the government said, to deal with wide fluctuation in prices that has added to food inflation in the country.
A government statement said the cabinet committee on economic affairs had approved the creation of the buffer stock within the current financial year with the procurement of 150,000 tons of pulses.
It said the pulses will be procured by government agencies at market prices above the minimum support prices, adding the move would encourage farmers to grow more pulses in an effort to make the country self-sufficient,
The statement said the government would also import pulses if there was a need
“Pulses production is dependent on rainfall as pulses are mostly grown in rainfed areas. Pulses witness huge fluctuations in prices depending upon rainfall. It is necessary to create a buffer stock of pulses to reduce price fluctuations. This will also help in providing remunerative prices to farmers in times of excess production,” the statement said.
India is the highest producer of pulses in the world, but ts domestic demand far outstrips production. The shortfall is met from imports, but the long-term solution lies in increasing production.
Rising prices of pulses, a staple of most Indians, has become a political issue with opposition parties and consumers complaining about ghe government’s slow steps to resolve the situation.