The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi has given its approval for removal of prohibition on export of all types of pulses to ensure that farmers have greater choice in marketing their produce and in getting better remuneration for their produce.

The CCEA also empowered the Committee chaired by Secretary, Department of Food & Public Distribution (DFPD) and comprising Secretaries of Department of Commerce (DoC), Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW), Department of Revenue (DoR), Department of Consumer Affairs (DoCA) and Directorate General of Foreign Trade (DGFT) to review the export/import policy on pulses and consider measures such as quantitative restrictions, prior registration and changes in import duties depending on domestic production and demand, domestic and international prices and international trade volumes.

Opening of export of all types of pulses will help the farmer to dispose off their products at remunerative prices and also encourage them to expand the area of sowing. Export of pulses would provide an alternative market for the surplus production of pulses. Allowing export of pulses will also help the country and its exporters to regain their markets.

It is expected that pulses production will be sustained in the country and our import dependence on pulses will come down substantially. This is also likely to provide higher levels of protein to the population and work towards nutritional security. The integration with global supply chain is also likely to help our farmers in adopting good agricultural practices and better productivity.

In 2016-17 production year, the Indian farmers have lived up to the challenge of reducing India's import dependence on pulses and have produced 23 million tons of pulses. The Government has taken a number of steps to sustain the high pulses production by our farmers. The Government has procured 20 lakh tons of pulses by ensuring minimum support price or market rates, whichever is higher, directly from the farmers and this has been the highest ever procurement of pulses.

Background:

The production of pulses in 2016-17 has been very encouraging and is the highest ever till date. Government has supported the farmers by providing attractive Minimum Support Price (MSP) for the pulses and public procurement of pulses to the tune of 20 lakh tonnes. The domestic production of pulses during 2016-17 was 22.95 million tonnes. The Chana Dal (Gram) production was 9.33 million tonnes as compared to 7.06 million tonnes in 2015-16 showing a growth of 32%. The production of other rabi pulses (includes Masoor Dal (Lentil) etc.) for 2016-17 was 3.02 million tonnes as compared to 2.47 million tonnes in 2015-16 showing a growth of 22%. For the year 2017-18, the Government has fixed a target of 22.90 million tonnes of pulses production.

Removal of export prohibition on pulses allows market access for farmers while retaining trade management tools for supply and prices. Removal of export prohibition on all varieties of pulses permits exports and empowers an inter departmental Committee chaired by the Secretary, Department of Food & Public Distribution to review and adjust the export/import policy. The Committee may adopt measures including quantitative restrictions, prior registration and import duty changes depending on domestic production, demand, price conditions and international trade volumes.