28May 2018

IMPACT OF TUR PROCUREMENT UNDER PRICE STABILIZATION FUND (PSF) IN MAHARASHTRA STATE.

  • Research Officer, Centre for Indian Agricultural Marketing Intelligence, MACP, Pune.
  • Information Technology Officer, Centre for Indian Agricultural Marketing Intelligence, MACP, Pune.

Tur (Pigeon pea) production in India is not sufficient to meet rising demand, although India is the largest producer and consumer of this pulse in the world. Most of the exporting countries do not consume themselves this commodity but produce it to satisfy Indian demand. With satisfactory progress in Monsoon and reports of increased acreage under Tur, the prices of Tur started decreasing, there was some effect of expected increase in arrivals also. For KMS 2016-17 the Government of India (GoI) had announced a Minimum Support Price, including bonus, at Rs. 5,050 per quintal. When the prices started ruling below this level, GoI had to intervene and procure the quantity from farmers at MSP. It was expected that this procurement drive would also assist GoI to create an adequate buffer stock of the commodity to prevent future abnormal price rise. The purpose of the study is to find the impact of Tur procurement on prices received by farmers, Arrivals and prices in APMCs markets in Maharashtra. To compare prices received by farmers through various marketing channels and to assess the impact of procurement on prices and arrivals in APMCs. The procurement prices are higher by around 6 to 8 per cent than the APMC prices. Considering that the procurement centre accepts only the prescribed grade produce, and the APMC price is for ungraded produce, this difference seems to be legitimate. The commodity that is accepted for procurement requires satisfying grade and quality specifications. That which is sold in APMC need not be so. Naturally, the procurement price is higher than the APMC price. In other words, the difference between the two shows the premium for the graded and quality product. Because of the procurement drive, the size of procurement was substantial. And because of this sizeable procurement, the market prices also remained under control.


Dr Deepak Waghmode
Research Officer

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