Opinion Dal Chaval

The government must follow its initiative in enforcing the MSP for dal by asking the corporate sector involved in agriculture to play an agency role for it. It was wise to expand the institutional support to dal farmers in this kharif by involving agencies additional to NAFED. But most of these agencies are weak in their field operations and the CACP in its recent reports has dutifully listed the markets in which even in years of high dal prices,prices in harvest seasons have fallen below MSPs and stayed there. This year the delayed rain and until the last phase the monsoon played truant in Eastern India and other areas where delayed rain leads to pulse and oilseeds sowing. In addition government took steps to support pulse production and Dr. Mahendra Dev before leaving the CACP for his academic work,gave a hefty push to the MSP for dal.

It would be unfortunate if all these favorable circumstances were frittered away by weak institutional support to dal purchases. Last year we reported that prices rapidly fell from sixty rupees a kilo or more for tur for example to around thirty in markets in Maharashtra and MP. The CACP reports gave other examples. Meanwhile the corporate sector is entering agriculture in a measured but firm manner. DCMs Haryali,Reliance’s Fresh,Tata’s Khet Se and more recently the dal initiative in Tamil Nadu including support to farmer’s groups and marketing and PEPSI are examples. In addition there is the gobal agricultural trader. As is by now well known many countries including Canada,Australia and others are planning support to their farmers in a big way to enter the inexhaustible dal Indian market. We still don’t have a long term plan.

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In crops like paddy and wheat the private sector acts in a big way to play an agency role in implementing the Government’s price support programme. Dal is largely grown in backward areas with poor transport and trading infrastructure,but the private sector is used to working in these areas. The government should even at this stage bring in this sector to implement irs price support programme in an agency role and implement the price support programme that way. In fact,I would recommend that if the private corporate sector is wiling to buy dal for processing and marketing at a price higher than the MSP,fifty percent of the purchase price above the MSP can be taken by the Government. That would still be lower than the subsidy given to farmers in rich countries,since the Government sells imported dal at a subsidized price.

Government is not known to be very savvy in its tariff policies towards agriculture and in oils and pulses has consistently followed policies of subsidising imports as against giving price incentives to Indian farmers,but it is never too late. If it is sensible,Indian traders and businessmen will gladly implement its domestic support policies rather than sell cheap subsidised imports.