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How effective has been the price support scheme for pulses and oilseeds

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How effective has been the price support scheme for pulses and oilseeds

  1. 1. How Effective has been the Price Support Scheme for Pulses and Oilseeds? Brajesh Jha Institute of Economic Growth, Delhi
  2. 2. Introduction Importance of MSP in increasing agricultural production, productivity …. also ensuring hh income of farmers can not be overemphasized. However, its relevance in open economy is often questioned. In this backdrop the present study attempts to study as to how frequently PSS follows market price, What is the basis of PSS operation? How import is influencing market price?
  3. 3. Frequency of PSS for pulses Limited operation (years) of PSS for Pulses In moong, masur and arhar frequency of PSS operation has been less, in specific year procurement of 2500tons PSS operation is more frequent for Gram and Urad; in 2004-05 it goes to the level of 155,000 tons
  4. 4. PSS for Pulses PSS operation in Moong is reported from Karnataka, AP, Rajasthan; Masur (lentil) from MP; Arhar (pigeonpea) from AP, Karnataka, Maharashtra, Delhi In Gram PSS operation reported from AP, Chhatishgarh, MP, Gujarat, Maharashtra, Rajasthan, UP; whereas in urad it is reported from AP, Assam, Bihar, Chhatishgarh, MP, Gujarat, UP, WB
  5. 5. Basis of PSS operation in Gram Correlation Coefficient with 2004-06 2004-05 2005-06 Importance of state in production of commodity (%) 0.89 0.93 0.94 Market arrival as percent of production Infrastructure (Road per 00’ sqkm of area) -0.20 -0.53 -0.01 Penetration of Market infrastructure (No. of APMC per 000’ha of NSA) -0.15 -0.28 -0.08 No. of observation 13 07 06
  6. 6. Price & PSS Operation Pulses Mkt prices lower than MSP PSS operation years Masur (lentil) 2004-05, 2005-06, 2006-07 2005-06 Moong 2003-04 Arhar 2005-06, 2006-07, 2007-08, 2011-12 2006-07, 2008-09 Gram 2005-06, 2006-07, 2007-08, 2008-09, 2009-10, 2010-11, 2011-12 2004-05, 2005-06 Urad 2001, 2002, 2003, 2009, 2010, 2011 2002-03, 2003-04, 2008-09, 2010-11,
  7. 7. Effect of PSS on market price PSS operation period and state Market price lower than MSP Urad 26-11-2010 to 14-12-2010 MP 26 & 27 Nov. 2010 Sironj (MP) 16-11-2012 to 26-02-2013 3-1-2013 (mandusar, Vidisha) 4th – 17th jan 2013 (vidisha in MP 20-11-2012 to 31-03-2013 Rajasthan In all mkts in Rajasthan 17-11-2012 to 21-01-2013 UP 29-31/ 12/2012 & 15- 16/01/2013 Bulandsahar Arhar 03-01-2011 to 28-02-2011 Maharashtra 10-01-2011 (Risod), 11-01- 2011 (Meharkar), 17-01- 2011 (Chikkali) 18-01-2013 to 08-03-2013 Andhra 24/28/29/30/- Jan 2013
  8. 8. Conclusions Regulated market with facilities for storage etc. Improvement in market statistics related to arrivals and destinations Imports with TRQ
  9. 9. Thank you…

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