Centre Seeks to Pause Pulse Stock Sales Amid El Nino Risk
UPSC / SSC current affairs note · Economy
Why in news
The Centre has asked the agriculture ministry to relax the nine-month disposal norm for government-procured pulse stocks under the Price Support Scheme (PSS). This is to preserve inventories amid emerging El Nino-related weather risks that could hit kharif production and fuel food inflation.
Background
The Price Support Scheme (PSS) is a procurement mechanism under which the government buys pulses, oilseeds, and copra from farmers at Minimum Support Price (MSP) when market prices fall below MSP, primarily to protect farmers' incomes. The Price Stabilisation Fund (PSF) is a buffer stock mechanism for holding and releasing stocks to stabilize prices.
Key facts
The Department of Consumer Affairs (DoCA) requested exemption for 2025-26 tur and chana stocks from the existing nine-month disposal timeline.
The move aims to strengthen preparedness against production losses from adverse weather and ensure affordable pulse availability.
Preliminary assessments indicate 'emerging El Nino-induced weather-related uncertainties' affecting acreage and crop performance.
Government has already transferred 300,000 tonnes of tur, 500,000 tonnes of chana, and 50,000 tonnes of urad from PSS to PSF buffer this year, worth ₹5,882.5 crore at MSP.
Further transfers may face funding constraints.
Current total pulses stock held by the ministry is about 4.5 million tonnes, including 1.1 million tonnes of tur, 2.3 million tonnes of chana, 650,000 tonnes of masur, 70,000 tonnes of urad, and 370,000 tonnes of moong.
Prelims pointers
- Price Support Scheme (PSS)
- Minimum Support Price (MSP)
- Price Stabilisation Fund (PSF)
- Department of Consumer Affairs (DoCA)
- Department of Agriculture and Farmers Welfare
- El Nino
- Kharif season
- Tur, chana, urad, masur, moong
Mains angles
- Discuss the role of PSS and PSF in ensuring food security and price stability.
- Examine the impact of El Nino on Indian agriculture and government preparedness.
- Analyze the challenges in managing buffer stocks and fiscal constraints.