CCEA okays disposal of pulses procured under Price Support Scheme & Price Stabilization Fund for welfare schemes

New Delhi, August 31, 2022

The Cabinet Committee on Economic Affairs (CCEA) today approved the disposal of chana (pulses) to States and Union Territories (UTs) at a discounted rate to be utilized for various welfare schemes from the stock of pulses procured under the Price Support Scheme (PSS) and Price Stabilization Fund (PSF).

The CCEA also approved the enhancement of the ceiling on the quantity of procurement under PSS from the existing 25% to 40% in respect of tur, urad and masur, an official press release said.

Under this scheme, State and UT governments are offered to lift 15 lakh MT of chana at the discount of Rs 8 per kg on the issue price of the sourcing state on a first come first serve basis. The States and UTs were to utilize these pulses in their various welfare schemes and programmes like Mid-Day meals, Public Distribution System, Integrated Child Development Programmes (ICDP), and so on.

This will be a one-time dispensation for 12 months or till the complete disposal of 15 lakh MT stock of chana whichever is earlier. The Government will spend Rs 1,200 crore for implementation of this scheme, the release said.

"The decisions will enable the States/UTs to use Chana in various Welfare Schemes like PDS, Mid-Day Meal Schemes etc. besides making available space of warehouses, which may be required in coming Rabi season for accommodating fresh stocks procured under Price Support Scheme. It will help in getting the remunerative price of pulses to the farmers besides, encourage more farmers to grow such pulses by making higher investments and help them in fetching remunerative prices for their produce," it said.

In recent times, the country has witnessed an all-time high production of Chana (Pulses), especially during the last three years. The Government, under the Price Support Scheme, has made record procurement of chana during Rabi 2019-20, 2020-21 and 2021-22. Thus, 30.55 lakh MT of chana is available under PSS and PSF.

In the coming Rabi season also, the production of chana is expected to be good. Coupled with the increase in minimum support price for chana during 22-23, it will entail additional procurement under the Price Support Scheme.

NNN