Hit by decline in their business due to the direct procurement, the pulses traders and millers in Kalburgi and Bidar, the main growing region in Karnataka, have urged the government to implement the price deficiency payment scheme (PDPS) or Bhavantar yojana for purchase of tur (red gram) from farmers.

Such a move, traders claimed would benefit the Government in terms of lower costs and reduced payout, while helping the trade and millers in terms of generating some business. Millers said the Government could avoid the additional handling, storing and managing costs by involving them in the procurement through PDPS. The state had recently implemented a PDPS in procuring onions.

The Kalburgi region is the largest producer of pulses -- mainly toor and the procurement is set to begin soon. Traders said direct purchase by state agencies has weaned away their business and that the introduction of PDPS would help them stay in the trade. On Monday, hundreds of traders and millers in Kalaburgi and Bidar district staged a protest demanding the introduction of PDPS in toor procurement this season.

Under Bhavaantar or PDPS, the government has to pay only the difference between the market price and the minimum support price to the farmers. Despite a poor crop this year on account of erratic weather, the modal prices of tur are currently ruling at around ₹4,500 levels, below the MSP of ₹5,675 per quintal announced by the Centre. Karnataka is paying a bonus of ₹425 per quintal making the total payout at ₹6100. It has set a quantity restriction of 10 quintals per farmer. There are over 400 processing mills and more number of traders dependent on the pulses trade in the region.

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