Pulses Promotional Strategies
Key recommendations of
Pulses Expert Group
Yoginder .K. Alagh*
Mukesh Khullar
*apologies Have to be in Anand on account of Dr. Kurien’s passing away
Introduction
• Government of India set up an Expert Group on pulses to suggest Short,
Medium and Long Term strategies to close the demand supply gap
• Seven issues were identified and Working Groups set up :
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Identification of additional area having potential for pulse crops
Seed replacement/multiplication strategy/programs
Identification of Best Agronomic Practices
Review of Prices, Tariff and Trade Policies
Communication Strategies for Farmer Outreach
Medium and Long Term Research and Planning Issues
PPP Business Models
• The group took note of the brainstorming session on Pulses that was
conducted in June 2009 in which specific issues and opportunities were
culled out for each of the major pulse crops. In turn its interim findings
were used by the DAC for its pulse strategies
The Pulse Economy
• Yield of pulses has remained low. Number of districts harvesting more than
0.8 or 1 t/ha yield of kharif pulses is small.
• Gap between demand and supply has been widening and has necessitated
annual import of pulses of around 3million tons.
• By 2024-25 IIPR estimates 25.39 million tons demand.
– Production would have to be nearly doubled from the 2007-08 levels.
– “output of pulses should grow at a rate significantly higher than that of cereals
so as to service the expanded demand in these areas” Approach paper 12th
Plan
– In fact some econometric estimates of the demand elasticities of pulses range
from 1.5 to 2.0. This would mean that with an increase of around 6.5% annual
in per capita income demand for pulses would increase around ten percent
annually.(Y.K. Alagh, The Future of Indian Agriculture, Indian Economic Journal,
April 2011, pp. 40-55:also the same title, NBT,2012)
Demand-Supply-Prices
Demand
25
20
15
10
5
0
Production
Import
Unit value of Import vs MSP
Unit value (import) Rs/T
2009-10 2010-11 2011-12
Peas
15663
15033
20265
Chickpeas
25102
25049
37094
Moong/Urad 44795
53450
41941
Lentils
37566
37754
30861
Tur (Arhar)
42551
33177
30709
Others
38533
48004
36885
Total pulses
28343
27044
27028
Import of Pulses
Peas
Moong, Urad, Massor, others
Tur
Chick peas
Total pulses
2009-10
0
17600
27600
18700
23000
-
MSP Rs/T
MSP as % of import value
2010-11 2011-12 2009-10 2010-11 2011-12
0
0
0
0
0
21000
28000
70
84
75
105
31700
44000
62
59
22500
28000
50
60
91
125
30000
38500
54
90
-
Qty in Lakh MT
2009-10
2010-11
2011-12
16.56
15.05
20.23
13.66
8.26
8.38
3.89
3.46
4.26
3.38
1.01
2.03
37.50
27.78
34.91
Why Stagnation?
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Area Stagnation: The main reason for stagnation in area under pulses has been
differential impact of technology and relative profitability leading to shifting of
area under pulses to more remunerative crops. The Expert Group worked out
relative price disadvantages for each pulse crop in its major regions. Expansion of
irrigation was another factor. Uncontrolled water flows(flooding) common in canal
systems is incompatible with large scale area under pulses.
The second factor influencing area allocation is risk in productivity and farm
income. There is a significant decline in instability of yield of paddy and wheat
from the onset of Green Revolution. Instability in productivity of gram remained
much higher than of wheat: in arhar, much higher than paddy. Pulses grown under
unirrigated rainfed conditions ,in marginal lands suffered instability.
• Though India is the largest producer of most of the pulses its productivity
levels are generally low. India did not figure in major technological
breakthroughs in the world with countries like Canada and others
achieving averages of around two tonnes per hectare in pulses
productivity. Technology breakthroughs in the difficult regions and
adverse farming conditions ( rainfed regions, the ghats and hill regions)
was just not there on a large scale
Productivity contrast
Productivity of different crop
groups (Rs./ hectare)
chickpea
Coarse-cereals
wheat
Pulses
Cereals
common bean
Oilseeds
soybean
Wheat
Rice
Brassica
Cotton
Irrigated rice
All-Crops
Sugarcane
0
Condiments/spices
2
4
6
8
10
12
Water use efficiency
(kg grain per hectare per mm of water)
Horticulture
Fruits/Vegetables
0
50,000
100,000
150,000
14
Constraints and Opportunities
• The agroclimatic, soil, infrastructural constraints are well known and that
part of the report is not repeated.
• But on the Opportunities;
– Identification of additional area having potential for pulse crops by utilization of potential
area of rice fallow lands 3 to 4 million ha have been identified in specified Districts
largely in Eastern India and can yield around 2.5 million tonnes
– About 5 lakh ha area of upland rice, 4.5 lakh ha area of millets and 3 lakh ha area under
barley, mutsard and wheat, currently giving low yields can be brought under kharif/rabi
pulses.
– About 16.5 lakh ha area vacated by wheat, peas, potato, sugarcane, lentil can be used
for raising 60-65 day summer mungbean crop in the States of Uttar Pradesh, Punjab,
Haryana, Bihar, Gujarat, and West Bengal where adequate irrigation facilities exist and
the menace of blue bull is contained.
– With some difficulty the Group has been able to isolate around 9 million ha in identified
Districts where watershed development in recent years gives scope for pushing pulses
development.
– Similarly pigeon pea on rice bunds and intercropping in specific agro climatic regimes is
identified
Raising Yields
• Promotion of Quality seeds
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Around 8 million tonnes of certified seeds are needed. The NAS can meet a lot
of these needs. But support from ICRISAT, private public partnerships has also
been advocated.
• Good Agronomic Practices
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including pest surveillance and dissemination of results
• Mechanization
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Not generally noted pulses are grown in different agro climatic regimes and soil
conditions can vary. In many soils mechanisation is essential to raise
productivity. Custom hiring Program is suggested.
• Value Chain Development
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Private sector should be encouraged to establish’ Dal Mills in rural
areas/districts with large acreage under pulses on the pattern of sugar mills.
Private companies need to be involved in processing, packing and marketing of
pulses. The public sector procurement agencies are severely handicapped for
funds and expertise in this area.
The Economics
• The report presents a detailed structure of MSP/tariff policy
recommendations to meet the economic incentives needed for what is
described as efficiency shifters with calculations from cost of cultivation
data to make our farmers competitive by meeting transitional costs. CACP
has also recommended this WTO compatible strategy as described in the
Alagh Committee Report 2003.
• Procurement centre with adequate storage facilities need to be
established at district and block level in major pulse growing zones.
• an urgent need to blend domestic price policy with tariff policy such that
domestic price of pulses stabilize and attractive returns to pulse producers
are ensured.
• Import duties on pulses need to be calibrated in response to the demand
and supply situation. MSP with subsidies without tariffs, subsidises
farmers in countries exporting to India
• The Report documents the facts and negative economics of stocking limit
orders, trading movement controls, licensing requirements and other
controls
On Technology
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The Expert Group notes that a detailed plan for achieving experimental yields of two
and a half tonnes per hectare as in some countries like Canada is not available in India
and it could not be prepared even though it was requested by it. The existing somewhat
rudimentary stage of the art is given in some recent discussions reported . The research
establishment is not only to blame since highly negative signals have been given to the
scientists working in the field.
It is obvious that the needs are so high that both for resources and management of
details a PPP mode will be needed. The Public sector ICAR system will need to take the
strategic initiatives.
The programs of development outlined above will raise yield to, say, 12 to 15 quintals
per hectare. If we get on the drawing board now, it would take four to five years. We
need such strategies for many pulse crops, in the PPP mode (GOI, 2010). To meet such
needs, both money and mobilization of scarce technical talent are required. We also
need great management and organizational abilities to cover the last mile in a long-haul
problem.
DG ICRISAT has recently endorsed the need to plan for yields of above two tonnes per
hectare in different agro climatic regimes. The plan will cost hundreds of crores of
rupees, if the experience of hybrid paddy is any indication.
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For example a highly productive seed chipper machine of Monsanto costs a billion dollars
Some Imperatives
• A Central organization working on what are called long-range, marginal
cost principles, which have been advocated for power projects, for
example, could work out fair pricing solutions. Anybody doing better than
the average efficiency cost estimates, giving a fair rate of return, would
keep the profits.
• It is important that the approach of a national regulator suggested in the
proposed Seeds Bill is properly designed and implemented by law. Instead,
we are going through an extremely destructive regulation of states like
Andhra Pradesh, Gujarat and Maharashtra, through State Price Control
Acts. " is short-sighted. By cutting down normal profits in the industry after
R&D has been done, this will discourage investment in the sector. In April
2011 the Gujarat High Court has struck down the right of the State
Government to regulate seed prices.
Newer Business Models
• The models studied involve private-public partnership (PPP) and are listed
below:
– Rallis India – Tamil Nadu Govt. and partnership for enhancing black gram cultivation in 3
blocks of Pudukkottai district of Tamil Nadu.
– Tata Chemicals Ltd.- Punjab state Govt. partnership for promotion of summer moong in
Punjab.
– Agriculture Consultancy Management Foundation (ACMF)- Rallis India Ltd. partnership at
Somangalam (Chennai) in Tamil Nadu for promotion of black gram cultivation.
• A public private partnership model involving the agencies and activities
listed below is recommended.
• Public Partners:
– Public research organizations for development of varieties production of nucleus and
breeder seed.
– SAUs/ KVKs for improved package of practices.
– Departments of Agriculture for proving policy and administrative support.
– water and vegetation) for augmenting pulse production on sustainable basis.
• Pvt partners in next slide
More on PPPs
• Private partners: One or more Organizations/ Companies can
participate in the following activities.
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Seed production with active involvement for farmers/ farmer groups.
Extension of improved package of production practices to farmers.
Skill upgradation of farmers.
Delivery of inputs and services to farmers.
Technological interventions based on recommendations of SAUs/ICAR institutes.
Crop-insurance and credit delivery.
Procurement of produce from farmer at market rate + incentive.
Promotion of resource relevant farm mechanization
Development of natural resources (land, water and vegetation) for augmenting
pulse production on sustainable basis.
• A National Pulse Development Board of an autonomous
character is recommended to coordinate and oversee
implementation
Conclusions
• 25 % increase in the crop yields and 5 million
ha additional area in next 5 years is possible
• Policies that promote pulses as environment
friendly crops and that sustains private sector
interest should be encouraged
• Research establishment must come out with
clear road map to address known issues to
bring pulses at par with other crops
Thank You