The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has approved the release of pulses to States/UTs at discounted rate to be utilized for various Welfare Schemes from the stock of pulses procured under Price Support Schemes (PSS).

Impact:

The decision will enable the States/UTs to use pulses in various Welfare Schemes like PDS, Mid-Day Meal Scheme etc. besides making available the warehouses, which may be required in coming Kharif season for storage of commodities procured under Price Support Scheme.

Details:

Under this approved Scheme, the States/UT Governments are offered to lift 34.88 lakh MT of Tur, Chana, Masoor, Moong and Urad at discount of ₹ 15 per Kg over the prevailing wholesale market price of the sourcing state on First come first serve basis. The State/UTs Governments utilize these pulses in their various Welfare Schemes/Programmes like Mid-Day Meal, Public Distribution System, Integrated Child Development Programmes (ICDP) etc. This will be one-time dispensation for a period of 12 months or complete disposal of 34.88 lakh MT of pulses stock whichever is earlier. Government will spend ₹ 5,237 crore for implementation of this Scheme.

Background:

Country has witnessed all time high production of pulses during the last 2 years. Government of India under Price Support Scheme has made record procurement of pulses during Kharif 2017 and Rabi 2018 marketing season. A record procurement of 45.43 lakh MT of pulses has been done under Price Support Scheme. In the coming Kharif season the production of pulses is expected to be good. This coupled with increase in Minimum Support Price will require additional procurement under Price Support Scheme.

Central subsidy for pulses release enables states to procure PSS stock at discounted rates for welfare schemes. Authorises one time release of pulses procured under the Price Support Scheme to States/UTs for use in welfare programmes. Designated stocks of specified pulses may be lifted on a first come, first served basis at a discount of fifteen per kilogram over the sourcing State's prevailing wholesale price, for twelve months or until stock exhaustion. The central government will fund the subsidy to enable allocation to schemes such as the Public Distribution System, Mid Day Meal Scheme and Integrated Child Development Services and to free storage ahead of the next procurement season.