Creation of buffer stock of pulses hit by operational difficulties

PUNE: Central government's plan of creating a buffer stock of pulses has been hit by operational hurdles. The government agencies are finding it tough to purchase pulses at prevailing market rates, as against the regular minimum support price (MSP) operations, which are carried out at fixed price.

With the production of pulses likely to be lesser than demand in 2016 due to deficient monsoon rains, central government has entered markets to create a buffer stock of pulses.

However, even as the central government authorities toured Karnataka today to resolve various operational issues regarding procurement of pulses, the problems faced by the implementing agencies remain unsolved.

The Gulbarga APMC in Karnataka follows tendering system for sale of commodities. Sources told ET that the government agencies will have to 'aggressively' compete with the private players to get sufficient quantities. During last few days, as compared to arrival of about 15,000 quintal tur beans at Gulbarga, the Karnataka State Co-operative Marketing Federation has been able to procure only 250 quintal tur beans.

Even as the Federation 'struggles' to procure pulses at Gulbarga, Sedam and Bidar for Nafed (National Agricultural Co-operative Marketing Federation of India), it has to begin operations for FCI (Food Corporation of India) at Yadgir and Raichur. The Gulbarga APMC has issued two licenses to the Federation; first to act as a commission agent and second one for bidding like a trader.

Farmers and other stake holders had suggested the central authorities to fix a price, slightly higher than the prevailing market price for creating the buffer stock. However, the suggestion was declined by the central team.