MUMBAI: India’s cabinet approved on Wednesday doubling state purchases of oilseeds and pulses from farmers, in a bid to boost local output and prevent distressed sales.
The amount that state agencies guarantee to buy at pre-set prices will double to 190 billion rupees (US$2.9 billion) for a five-year period ending in 2021/22, government spokesman Frank Noronha said in a tweet.
India is the world’s biggest edible oil buyer and frequently imports pulses, or lentils, because many Indian farmers tend to swing from one commodity to another depending on government incentives, leading to oversupplies one season and shortages in the next.
The government has been seeking ways to encourage farmers to invest in those commodities.