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Pulses MSP and PSS procurement by NAFED

The central government procures five major pulses — tur (pigeonpea), urad (blackgram), moong (greengram), chana (chickpea) and masoor (lentil) — at notified Minimum Support Prices (MSPs) when mandi modal prices fall below MSP. Procurement runs under the Price Support Scheme (PSS) of the Department of Agriculture and Farmers Welfare (DA&FW), with NAFED as the central nodal agency operating through state cooperative federations.

Overview

MSPs for pulses are notified twice a year by the Cabinet Committee on Economic Affairs on the recommendation of the CACP — before kharif sowing (tur, urad, moong) and before rabi sowing (chana, masoor). Recent MSPs (Rs/quintal):

  • Tur (arhar): 6,300 (2022-23), 7,000 (2023-24), 7,550 (2024-25)
  • Urad: 6,600 (2022-23), 6,950 (2023-24), 7,400 (2024-25)
  • Moong: 7,755 (2022-23), 8,558 (2023-24), 8,682 (2024-25) — highest MSP among pulses
  • Chana: 5,335 (2023-24 RMS), 5,440 (2024-25), 5,650 (2025-26)
  • Masoor: 6,000 (2023-24 RMS), 6,425 (2024-25), 6,700 (2025-26)

Since 2018-19, all pulse MSPs are computed on the C2+50% framework (50% margin over comprehensive cost including imputed land rent and capital cost).

Eligibility

Registered farmers in pulse-producing states (Maharashtra, Karnataka, Madhya Pradesh, Rajasthan, Andhra Pradesh, Telangana, Uttar Pradesh, Gujarat, Tamil Nadu, Odisha) can sell to NAFED-designated procurement centres when:

  • Mandi prices fall below MSP for at least 3 consecutive days, and
  • The state government requests procurement and DA&FW notifies the operation
  • Grain meets Fair Average Quality (FAQ) specifications (max 12% moisture, max 3% foreign matter, max 5% damaged)
  • Farmer registers on the state procurement portal (e-Samriddhi, AGRISNET, etc.) with land record, Aadhaar and Aadhaar-linked bank account
  • Per-farmer cap typically 25-40 quintals/season

Benefit and structure

Payment is at the notified MSP into Aadhaar-linked accounts within 7-15 days of delivery. State cooperative federations (APMARKFED, TSCMF, KSCMF, MAHFED, MARKFED, RAJFED, MPMARKFED) run the physical procurement centres; gunny, transport, handling, storage and interest costs are reimbursed under PSS. Procured stock is held in the NAFED-managed buffer of 20-30 lakh tonnes under the Price Stabilisation Fund, then disposed through:

  • The Bharat Dal retail brand (chana dal at Rs 60/kg, moong dal at Rs 107/kg)
  • PDS and welfare-scheme supply (mid-day meal, ICDS, ICDS-Saksham)
  • Open-market tenders to dampen retail spikes
  • Inter-state transfers and exports under DGFT permission

Implementation

Peak procurement years include 2017-18 (35.5 lakh tonnes across all pulses, mostly chana), 2018-19 (28.6 lt), 2022-23 (5.2 lt of tur under the four-year guaranteed procurement scheme for tur farmers in Maharashtra, Karnataka and AP). Tur procurement was expanded after the 2023 G-to-G tur deal with Mozambique was disrupted. Under the PM-AASHA umbrella, PSS has been combined with the Price Deficiency Payment (Bhavantar) option for select states, though physical PSS remains the dominant route.

Limitations

Procurement is reactive — opening 4-8 weeks after the post-harvest price crash, when small farmers have already sold to commission agents. Storage shortages slow operations. Per-farmer caps limit MSP coverage of medium and large growers. Disposal at sub-MSP prices generates losses borne by the central PSS budget. Imports of yellow peas and other substitutes periodically suppress domestic prices and increase procurement volumes.

See also: Chickpea MSP procurement, NAFED procurement of pulses, MSP — Minimum Support Price, CACP, Pulse import dependence, NFSM-Pulses.

Sources

  1. Price Support Scheme operations. Department of Agriculture & Farmers Welfare.
  2. NAFED pulses procurement and Bharat Dal. Press Information Bureau.
  3. CACP price policy report kharif 2024-25. Commission for Agricultural Costs and Prices.