Bihar Enters Direct Central Pulse Procurement Network

Why in the News ?

Bihar has joined the Centre’s pulse procurement network for the first time.Under a new model, central agencies such as NCCF and NAFED can directly purchase masoor (lentils) from farmers at MSP, bypassing state-level procurement agencies.The initiative aims to strengthen MSP-based procurement, improve farmer incomes and encourage pulse cultivation and crop diversification.

Bihar’s Entry into Direct Pulse Procurement

•     Bihar produces nearly 4 lakh tonnes of pulses annually and has around 48,000 hectares under pulse cultivation.
•     The State has historically had limited access to the Centre’s procurement mechanism because it abolished the APMC system in 2006.
•     Consequently, farmers have largely depended on private traders and alternative market channels, sometimes selling produce below the Minimum Support Price (MSP).
•     The new arrangement allows central procurement agencies to purchase pulses directly from farmers, without relying on state-level intermediaries.
•     Around 3,000 tonnes of masoor had been procured from Bihar by the first week of August, against a target of 32,000 tonnes.
•     Approximately 750 farmers have benefited, receiving nearly ₹21 crore for their produce at an MSP of ₹7,000 per quintal.
•     The procurement window remains open, allowing additional farmers to participate.

Procurement Mechanism and Significance

•     The National Cooperative Consumers’ Federation (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED) are undertaking procurement.
•     NCCF procured about 1,200 tonnes from Nalanda, Patna, Vaishali and Rohtas.
•     NAFED procured nearly 1,850 tonnes from Jehanabad, Kaimur, Lakhisarai, Nalanda, Patna and Rohtas.
•     Payments under the direct model are transferred directly into farmers’ bank accounts, improving transparency and reducing intermediary dependence.
•     Successful procurement can increase farmers’ confidence in the Centre’s MSP procurement system.
•     It could encourage greater participation in government procurement and support crop diversification towards pulses.
•     The initiative is particularly relevant for India’s objective of improving domestic pulse production, reducing import dependence and strengthening food and nutritional security.

 About MSP and Pulse Procurement:

•     Minimum Support Price (MSP) is the price announced by the government to provide farmers a degree of protection against sharp market-price declines.
•     MSP is recommended by the Commission for Agricultural Costs and Prices (CACP) and announced by the government for major agricultural commodities.
•     Pulses are important for:

○      Nutritional security through plant-based protein.

○      Soil fertility, as legumes help fix atmospheric nitrogen.

○      Crop diversification away from water-intensive crops.

○      Reducing dependence on pulse imports.

•     Direct procurement can improve price realisation, reduce intermediary dependence and strengthen farmers’ access to formal markets.
•     However, effective MSP procurement requires adequate procurement infrastructure, storage facilities, timely payments and wider geographical coverage.