Having procured an all-time high amount of pulses from farmers over the past two years, the Centre has now decided to offload stock from its overflowing warehouses by selling it to States for use in welfare schemes at a discount of ₹15 per kg over the wholesale rate.
At its meeting on Thursday, the Cabinet Committee on Economic Affairs approved the plan to sell almost 35 lakh tonnes of tur, channa, masoor, moong and urad dal. The scheme is likely to cost the exchequer ₹5, 237 crore, according to an official statement.
Farmers have seen record harvests of pulses in the past two years, resulting in a sharp drop in prices. With the government making market interventions to protect farmers’ interests, price support schemes have been widespread in many States. As a result, record procurement of 45.43 lakh tonnes has resulted in full godowns.
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In order to clear space for the procurement expected this season, the Centre is offering 34.88 lakh tonnes of pulses to the States to use in ration shops under the public distribution system or in welfare schemes such as mid-day meals or the Integrated Child Development Programme. This will be a one-time dispensation for a period of 12 months or till the stock runs out.