Cabinet Approves Sale of Chana to States & Union Territories at Discounted Rate

According to a government statement, the Cabinet Committee on Economic Affairs of India approved the sale of Chana to states and union territories at a subsidized price for welfare schemes today.

Under the scheme, states will be able to lift 15 lakh tonnes of chana procured under Price Support Scheme & Price Stabilization Fund, at a discount of Rs 8 /kg over issue price of the sourcing state on first-come-first-serve basis. The Centre will spend Rs 1,200 crore for implementation of this scheme.

The decisions will allow the States/UTs to use Chana in various Welfare Schemes such as PDS, Mid-Day Meal Schemes, etc., as well as make available warehouse space that may be required in the coming Rabi season for accommodating fresh stocks procured under Price Support Scheme, which will help in getting remunerative price of pulses to the farmers. Furthermore, the decisions will encourage more farmers to grow such pulses by making higher investment and help them in fetching remunerative price for Moreover, this contributes to our country's self-sufficiency in such pulses.

The chana purchased under the program must be used by the states for social services like the mid-day meal, public distribution system, and integrated child development programs.

The government said that this program is a one-time dispensation for a period of 12 months or until the full disposal of 15 lakh tons of chana stock, whichever comes first.

The CCEA also authorized raising the ceiling on the amount of procurement under the Price Support Scheme for Tur, Urad, and Masur from the present 25 percent to 40 percent.

The government stated that the choices will free up storage space that may be needed in the upcoming rabi season to accommodate fresh commodities purchased under the Price Support Scheme.

Over the past three years, chana production has increased to record levels. In accordance with the Price Support Scheme, the central government purchased an unprecedented amount of chana during the rabi seasons 2019–2020, 2020–21, and 2021–2022.

As a result, the government has 30.55 lakh MT of Chana available under PSS and PSF for the upcoming Rabi season as well; Chana production is expected to be high. This, together with a rise in the Minimum Support Price for Chana during the years 22 and 23, would need more purchases made under the Price Support Scheme, according to the government.