Last year, India produced 17.20 million tons -- 2 million tons less than the previous year. The drop in production has widened the demand-supply gap, which India tries to bridge through imports.
As the price of pulses soar, the Union government has decided to invoke price stabilisation fund and build a buffer stock to avoid another such crisis in future.
Arhar or tur dal prices are hovering at Rs 180 per kilo. The next stock is expected only at the end of this year.
"We will invoke price stabilisation fund, so handling charges, transportation charges and milling charges will be borne out of this fund," said Finance Minister Arun Jaitley today. "We hope this will have some effect on cooling down prices."
Even though the government has imported 5,000 metric tons of dal, except for Tamil Nadu and Andhra Pradesh, no other state has shown any willingness to lift the stock.
This is because despite a central government subsidy, additional costs like transport and milling increase the price by the time pulses reach the consumer.
Now with the introduction of the price stabilisation fund, aimed specifically to contain volatilities in prices of commodities, the government hopes, more states will come forward.
Last year, India produced 17.20 million tons -- 2 million tons less than the previous year. The drop in production has widened the demand-supply gap, which India tries to bridge through imports.
Asked if the government was late in waking up to the crisis, Commerce Minister Nirmala Sitharaman told NDTV that the process of importing pulses was started in June.
"But importing also takes time and there are limited options from where we can get pulses. Two to three times tenders didn't go through," she said. "Except for dal, inflation is well under control. The government is doing everything to tackle this and we will import more to build a buffer stock for the future."
The minister, however, defended the absence of two of her colleagues, Food Minister Ram Vilas Paswan and Agriculture Minister Radha Mohan Singh, both of whom have been busy campaigning for the ongoing assembly elections in Bihar. "Just because they are not here, work does not stop," she said.