Dal and Oil: India's Kitchen Imports
Pulses Buffer Stocks and Procurement
How India built buffer stocks of pulses after 2015, how procurement at MSP works through NAFED, and the costs of holding stocks.
After the 2015-16 crisis, India built buffer stocks of pulses.
The buffer
- In 2016, the government created a pulses buffer, targeting around 20 lakh tonnes.
- Stocks are procured from farmers and imports.
Procurement
- NAFED and other agencies buy pulses at MSP under PM-AASHA (2018).
- Procurement protects farmers when market prices fall.
Using the buffer
- Stocks are released when prices rise.
- Bharat Dal: in 2023, the government sold subsidised chana dal under the “Bharat” brand.
- Supplied to welfare schemes like mid-day meals.
Costs
- Storage and handling costs.
- Quality deterioration over time.
- Losses when selling below purchase price.
Assured procurement
In 2025, the government announced plans to buy tur, urad and masoor at MSP for several years to encourage production, under a pulses self-reliance mission.
The released stock
When tur prices rise before a festival, the government releases buffer stocks into the market, easing prices for consumers.
Thinking buffer stocks are free to maintain
Storage, quality loss and price differences create costs.
Key takeaways
- India built a pulses buffer after 2016.
- NAFED procures pulses at MSP under PM-AASHA.
- Stocks are released to ease prices, including via Bharat Dal.
- Buffers carry storage and quality costs.
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