The government will soon invite tenders from state-run and private companies to set up an entity to manage the proposed buffer stock of pulses. This stoke would help for better storage, a senior official said.
This follows the recommendation of a panel headed by chief economic adviser Arvind Subramanian, which backed the setting up of a new institution to compete with and complement existing institutions to procure, stock and dispose pulses.
The government has already decided to create a two-million-tonne buffer stock as authorities move to tackle the problem of shortages and price rise of the essential protein item during certain months of the year.
Spiraling prices of pulses and its shortage has emerged as a huge political issue and authorities are keen to ensure it is tackled on a war footing to blunt criticism. The Subramanian panel had recommended that a Cabinet note on the issue should be ready within four weeks.
"We have no other option than creating buffer until we become self-sufficient in pulses production," said consumer affairs secretary Hem Pande.
The prime minister's office had also asked the consumer affairs ministry to allow state government agencies to buy pulses from farmers for the stock since agencies such as Food Corporation of India and national agriculture products cooperative (Nafed) are already over-burdened.