5 states ready to procure chana at discount from Centre for their welfare schemes

Five states - Chhattisgarh, Tamil Nadu, Himachal Pradesh, Gujarat and Karnataka - have expressed their intention to procure chana from the central government at the discounted rate of Rs 8 per kg for various welfare schemes.

"These states will send indents to us after working out their requirement," said an official aware of the matter.

The measure is a part of the market intervention scheme to prevent farmers from resorting to the distress sales of chana. It will also help in improving market sentiment and rationalising the price of the pulses and adding required protein to the beneficiaries of the welfare schemes, he added.


The Union cabinet recently approved the disposal of 15 lakh tonne of chana to states at a discounted rate of Rs 8 per kg to be utilised for various welfare schemes. At present, the Union government has a stock of 30 lakh tonnes of chana. By liquidating half the stock, it will be creating space for the new harvest due in April. The buffer norm for chana is 6 lakh tonnes. Under this scheme, the governments of states and Union Territories are offered 15 lakh tonnes of chana at the discount of Rs 8 per kg on a first-come-first-serve basis.

The chana is from the stock procured under the price support scheme at the Minimum Support Price and price stabilization fund, which is the buffer stock maintained to avert sharp hikes in rates.

These stocks can be utilised by state governments for schemes such as the Mid-Day Meal, Public Distribution System and the Integrated Child Development Programmes (ICDP) among others.

This discount will be a one-time window for a period of 12 months or till the complete disposal of 15 lakh tonne stock, whichever is earlier. The government will spend Rs 1,200 crore for the implementation of this scheme.