FinMin hopes higher MSP will boost pulses production, lower pricesFinMin hopes higher MSP will boost pulses production, lower pricesFinMin hopes higher MSP will boost pulses production, lower prices

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The Finance Ministry on Thursday expressed hope that the prices of pulses will now be contained and help keep inflation under check due to the higher minimum support price for pulses.

“Increase in MSP of pulses by govt showing results. Acreage and production expected to be higher. (It) should help in containing food inflation,” tweeted Economic Affairs Secretary Shaktikanta Das.

Pulses such as ‘tur’ have been selling for close to ₹200 per kilogram on the back of a demand and supply mismatch and have been a significant contributor to inflation. While retail prices of pulses jumped up 31.57 per cent in May, wholesale price inflation in pulses grew by 35.56 per cent in the month.

But hoping for better supply of the pulses this fiscal, Food Minister Ram Vilas Paswan had on Wednesday said the production of pulses is estimated to rise to 18-20 million tonne (mt) this year from 17.06 mt last fiscal.

Hoping to encourage farmers to cultivate pulses, the Government had in June increased the MSP of pulses along with a bonus of ₹ 425 per quintal.

Prime Minister Narendra Modi is also set to a sign a Memoranda of Understanding (MoU) with Mozambique for pulses import during his ongoing visit to Africa.