Gearing up for El Nino: NCCF puts tenders to sell Tur Dal on hold
The National Cooperative Exports Limited (NCCF) has paused tenders for selling tur (arhar) dal from the government's buffer stock, following a request from t...
What Happened
- The National Cooperative Exports Limited (NCCF) has paused tenders for selling tur (arhar) dal from the government's buffer stock, following a request from the All India Dal Millers Association.
- The industry body requested a two-month pause to allow for clarity on monsoon performance and kharif sowing prospects before additional supply is released into the market.
- The decision reflects concern that El Niño-induced below-normal rainfall could hurt tur production during the kharif 2026 season, making premature stock release potentially counterproductive to price stability.
- India's current central pool holds approximately 19.74 lakh tonnes of pulses, of which 10.21 lakh tonnes were procured under the Price Stabilisation Fund (PSF) — more than double the stock held in May 2025.
- The government's buffer stock build-up has been driven by an assured procurement policy designed to reduce import dependence and shield consumers from price volatility.
Static Topic Bridges
NCCF and NAFED: Central Nodal Agencies for Buffer Stock Operations
The National Cooperative Consumers' Federation of India Limited (NCCF) was established on 16 October 1965 under the Union Ministry of Consumer Affairs, Food and Public Distribution. It is the apex body of consumer cooperative societies in India. NAFED (National Agricultural Cooperative Marketing Federation of India) is the apex cooperative for agricultural marketing. Both NCCF and NAFED serve as Central Nodal Agencies (CNAs) for pulses procurement under the Price Stabilisation Fund (PSF) — they buy directly from farmers or mandis and hold stocks for release during price spikes.
- NCCF operates the "Bharat" brand for subsidized retail sale of pulses, edible oils, and vegetables during price stress.
- NAFED focuses on Minimum Support Price (MSP) procurement operations for oilseeds and pulses.
- Both agencies operate under MoU with the Department of Consumer Affairs.
- Government policy since 2023-24 has strongly expanded both agencies' procurement mandates for self-sufficiency in pulses by December 2027.
Connection to this news: NCCF pausing tur dal sale tenders is a buffer stock management decision — balancing the risk of depleting strategic stocks ahead of a potentially poor kharif harvest against current market prices.
Price Stabilisation Fund (PSF) and Buffer Stock Policy
The Price Stabilisation Fund (PSF) was established in 2014-15 by the Government of India to check price volatility in agricultural commodities and mitigate hardships for consumers. The PSF scheme enables the government to: (i) procure agri/horticultural commodities directly from farmers at farm gate or mandi; (ii) maintain buffer stocks to discourage hoarding and speculation; and (iii) release stocks into the market at reasonable prices during price spikes.
- Commodities covered under PSF buffer: Urad, Moong, Tur, Masur, Gram (pulses); Tomato, Onion, Potatoes.
- Wheat and rice have been brought under PSF recently, adding to the buffer stock mandate.
- Government budgetary support to PSF (2014-15 to 2023): ₹27,489 crore.
- The Essential Commodities Act (ECA), 1955 provides the overarching legal basis for stock limits, export restrictions, and price controls on essential commodities including pulses.
- Under ECA, the government can impose stock limits on traders and processors to prevent hoarding during shortage.
Connection to this news: The current tur dal tender pause is a PSF buffer stock management decision — holding back release pending a clearer picture of kharif production prospects under El Niño.
El Niño and Kharif Agriculture in India
El Niño-linked below-normal monsoon directly threatens India's kharif sowing season (June–October), which accounts for the majority of annual pulse production. Tur (arhar/pigeon pea) is India's most important kharif pulse — sown after the first monsoon rains and harvested in November–December. A delayed or deficient monsoon reduces sowing area, delays germination, and lowers yield. This makes pre-harvest price management critical, as lower domestic supply typically drives up retail prices of pulses — a politically sensitive food staple.
- India is the world's largest producer and consumer of pulses; yet remains a net importer.
- Tur dal production is concentrated in Maharashtra, Karnataka, Madhya Pradesh, and Uttar Pradesh.
- IMD's 2026 forecast: 90% of LPA (below normal), flagging El Niño development risk.
- Pulses central pool stock (2026): ~19.74 lakh tonnes — significantly higher than the 21 lakh tonnes in May 2024 and 18 lakh tonnes in May 2025.
- Higher buffer stocks provide the government with more intervention capacity to suppress price spikes if kharif production falls short.
Connection to this news: The pause in tur dal tenders is a pre-emptive buffer stock conservation measure — holding back supply to preserve intervention capacity in the event El Niño damages kharif output.
Key Facts & Data
- NCCF: National Cooperative Consumers' Federation of India; established 16 October 1965; under Ministry of Consumer Affairs, Food and Public Distribution
- NAFED: National Agricultural Cooperative Marketing Federation; apex cooperative for agri marketing
- Price Stabilisation Fund (PSF): Established 2014-15; covers pulses (Urad, Moong, Tur, Masur, Gram), tomatoes, onions, potatoes
- Total PSF budgetary support (2014-15 to 2023): ₹27,489 crore
- Current central pool pulses stock: ~19.74 lakh tonnes (as of June 2026)
- PSF stock: 10.21 lakh tonnes of the above procured under PSF
- Comparison: Stock more than double May 2025 level of ~18 lakh tonnes
- IMD 2026 monsoon forecast: 90% of LPA (below normal)
- Essential Commodities Act: 1955; legal basis for stock limits and price controls
- Tur production states: Maharashtra, Karnataka, Madhya Pradesh, Uttar Pradesh
- Self-sufficiency target in pulses: December 2027