India aims for 1 million-tonne tur buffer stock

The Indian government is working to stabilize the prices of tur, a key food item in the country, by aiming to create a buffer stock of 1 million tonnes for the fiscal year 2025-26. Officials from the consumer affairs ministry are leading this initiative because of an expected increase in domestic production and a downward trend in prices. So far, the government has procured about 200,000 tonnes of tur and hopes to reach 500,000 tonnes by the end of March. This increase in stock is seen as a way to manage food inflation and control prices. For the current crop year, tur production is estimated at 3.5 million tonnes, a slight increase from the previous year. However, output has varied in recent years due to unpredictable weather and changes in farming practices. The consumption of tur in India has also fluctuated. Imports from countries like Mozambique and Myanmar help meet demand, with duty-free imports allowed until March 2026. The buffer stock acts like a financial safety net, helping stabilize prices despite ongoing changes in supply and demand. Currently, the total central buffer stock stands at 1.36 million tonnes. Government agencies are involved in the procurement of tur to manage price volatility. Despite a minimum support price set at 7,550 per 100 kg, many farmers report selling below this level due to fluctuating market rates. However, the government's target of 1 million tonnes aims to support farmers amid bumper production. Retail inflation in India fell to a seven-month low of 3.61% in February. Prices of tur have decreased in major cities over the past year, with Delhi prices dropping from 157 to 132 per kg. Procurement of pulses under the price support scheme has lowered recently, as market prices have generally remained above the support levels. To address market volatility, the government has allocated over 4,000 crore rupees for the Price Stabilization Fund. This fund allows for the release of stocks when prices rise sharply. Overall, the production and pricing of tur remain important issues as the government continues its efforts to manage food costs in India.