With too many topics trending even at this moment (so much so that it is difficult to list out each one), people have started to overlook the crucial issue of inflation in pulses prices in India.
The irony, if one may say so, is compounded by the fact that 'Chicken', once considered a luxury for most people, has become cheaper than dal. This must not take away the fact that even among non-vegetarians, dal is a staple diet. Due to high meat prices, India has one of the lowest per-capita meat consumption rates. Study has blamed India's high malnutrition rates and stunted growth among children on low protein intake. Inflation in the prices of pulses (which is also a rich source of protein) is definitely going to descend its consumption rate as well, in a country saddled with a colossal population, maximum of whom live in extreme poverty.
The shoot up in pulses prices came as a dampener to the festive season when the demand was high, causing serious discontent among the people who are now questioning the 'Acche din promise' of the Modi-government by raising questions about its policies. The government, scrambling to retrieve the situation, has faced major setbacks especially because the election fought in Bihar and the Intolerance issue.
So what are actually the primary reasons behind the rise in prices of pulses?
Hoarding of pulses by large producers, traders and middlemen may be responsible for some extent to price rise with reports suggesting that about 75,000 tonnes of pulses were seized from hoarders in raids across 13 states (Source: TOI). But real reason behind it is that production of pulses has gone down with farmers as they prefer other crops mainly cereals. Facts provide that:
- Pulses is grown in only 16 per cent of irrigated area as against paddy which is cultivated in 60 per cent of irrigated land in the country.
- Despite a higher Minimum Support Price (MSP), the pulses cultivation has not scaled up to meet the growing demand because of inadequate supply of pulses seeds in the country.
- Pulses production fell to 17.20 million tonnes in 2014-15 crop year due to deficient monsoon against consumption of 22 million tonnes, as compared to 19.25 million tonnes in the previous year. (Source: The Hindu)
To counter the fall in production the government hiked the official procurement price of pulses by Rs 325 per quintal, and by this it seemingly sought to encourage farmers to grow more pulses that the country desperately needs, as opposed to surplus cereals. But the government was just too slow in bringing these changes. MSP increase should have been made by mid-October at the latest. Instead, it didn't happen till first week of November, when Rabi sowings had already crossed 8.5 million hectares. (Source: Indian Express)
Further, the government made things worse by simultaneously raising the MSP of wheat by Rs 75. This ensures that farmers plant more of this cereal when the Food Corporation of India is, as it is, holding almost 12 million tonnes of buffer wheat in its godowns. Last year, farmers delivered over 28 million tonnes of wheat to government agencies, even with a hike of Rs 50 per quintal MSP increase. Farmers could have been trusted to produce and deliver even more with the same MSP this time. Soaring dal prices presented a rare opportunity for the government to induce farmers across the country to grow pulses. The government should have ideally frozen the MSP of wheat at last year's level and simultaneously increased that of Chana and Masur. In a time where Indian Politics & Administration is seeing revolutionary efforts under the leadership of Shri. Narendra Modi, such policies prove definitely to be a step backwards…
4. 4.6 million tonnes of pulses was imported by India in 2014-15 (Source: The Hindu)
India is the largest producer and consumer of pulses and it is grown in few other countries. For some years now, India has been resorting to huge imports of pulses to meet domestic demand and keep prices in check. The shortfall between production and consumption is made up by imports, mainly from Canada, Myanmar and some African countries. So the government's plans to increase imports have failed because there are limitations to scaling up pulses supply through the international market. It has only served to drive up international prices, which is now reflected on our domestic markets too. For a food crop so vital to the country, this shortfall was always a dangerous proposition, and these past few months of runaway prices have proven why it was unwise to rely upon imports.
It's not that the government hasn't taken any other measures to curb rising retail prices of pulses. Government agencies such as Food Corporation of India (FCI), Small Farmers' Agribusiness Consortium (SFAC) and farmers' cooperative NAFED (National Agricultural Cooperative Marketing Federation of India Limited) would procure one lakh tonne of pulses starting this month (Source: The Financial Express). The procured pulses will be used to create buffer stock which would be released in the market once the retail prices start to rise.
The current government is doing good work in the area of Foreign Affairs, Defence, HRD, Rural & Urban development etc., but its lack of experience in handling agricultural issues can be clearly seen. It's time the Prime Minister concentrates more on domestic policies as he is doing on foreign policies because a lot of things require the PMO's intervention. For the Prime Minister and his team, this presents an opportunity to demonstrate its ability to meet crises. These are small but very important matter which must be handled with some quick / brilliant thinking. Imports are no solution for long term. The production of pulses has to be put on track at the earliest. If you look back you will find that the retail food inflation had hovered around the 10 per cent rate during the UPA government's second tenure, a key reason for its unpopularity. Therefore, unless food price spurts are reined in, the NDA government is in danger of going down the same disastrous road as its predecessor.
Source : articlesbase.com
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