This paper examines the causes of low growth in pulses production at the all-India level in terms of profitability of the farm business and the workings of the price policy. More precisely, it considers the effectiveness of price policy instruments in helping farmers gain sufficient income to promote investment, technology, and productivity. The analysis shows that the agricultural price policy, which aims to provide a remunerative and stable price environment to farmers, has been largely irrelevant in the case of pulses. It also suggests a review of the criteria for fixing the minimum support price of pulses and making it sensitive to prevailing market prices.