By converting a necessity into a virtue, the government has decided to release the large inventory of procured pulses to different States at a discounted rate for utilisation in various welfare programs.

Necessity because the stocks continue to occupy scarce warehousing space and incur huge carrying costs.

Also, the Centre thinks, warehousing space may be needed during the upcoming kharif harvest less than six weeks away; and of course, demand for food commodities including pulses usually spikes during the festival season that runs from August to October.

While the decision to liquidate the stocks is welcome, it is a half-hearted measure that seeks to deal with disposal of accumulated stocks in a routine manner without taking into consideration the propensity (or otherwise) of States to absorb such supplies. We have seen in the past reluctance on the part of State governments to lap up food commodities offered by the Centre. So, pulses this time may be no different.

Unfortunately, the lack of ‘political will’ to include pulses under the public distribution system as the Centre’s responsibility (in addition to wheat and rice) is palpable; and in some way it is seen as abdication of a sovereign duty. In case of pulses and edible oil, why pass on the choice of items under public distribution to the States?

Protein-rich pulses

It is common knowledge that the country’s nutrition status is poor. Large sections of the country’s population are under-fed. Under-nutrition is pervasive and protein-deficiency stark. This has long-term adverse consequences on the economy including lower labour productivity and higher healthcare costs.

Pulses offer the most economical vegetable protein to the vulnerable sections of the population who in fact deserve to eat more protein at affordable rates; and there are political gains to be had by including pulses under PDS with elections round the corner. It is unclear what’s holding up a rational decision.

Harvest size

Although planted acreage for pulses has held up quite admirably this kharif season (124 lakh hectares) despite weak prices throughout the year, the less-than-satisfactory spatial and temporal distribution of the South-West monsoon is likely to push the harvest size well below the target of 89 lakh tonnes. The eventual harvest size could be closer to 80 lakh tonnes or even a tad lower.

Yet, given the high level of minimum support price (MSP) announced for tur/arhar and other kharif pulses, on current reckoning, market prices are unlikely to rise to MSP level in a hurry. This will force the government to continue to implement the price support operation for the third year in a row.

Has Indian pulses production broken the 220 lakh tonnes barrier decisively? On current reckoning, it looks likely. This is similar to what happened in 2010-11 when pulses output broke the previous 140-150 lakh tonnes mark and escalated to 170-180 lakh tonnes level which continued for four years.

It is likely we are now in the next higher range of 220-240 lakh tonnes production. Yet, we cannot lose sight of the risk that Indian agriculture is fragile and the country may be just one bad monsoon away from a farm disaster. So, we cannot take these production levels for granted but work to ensure sustained growth in harvest size commensurate with increase in demand.

Importantly, New Delhi has to adopt policies that promote pulses consumption. Unfortunately, again, supplies are sought to be choked while demand deserves a higher push.

The writer is a policy commentator and global agri-business specialist. Views are personal.

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