The demand for pulses in India lags behind production not only leading to price rise but also necessitating the need for imports. The price rise was especially unprecedented in 2015–2017, indicating that the sector is neglected and vulnerable to price shocks. This paper studies major issues in pulse economy such as price volatility, government interventions for stability, and yield gaps. The paper observes that the pulse sector suffers from inter seasonal fluctuations in prices and in years of price rise due to supply shortage, the gap is met with imports. The crop suffers from yield gaps as production is dictated by unpredictable monsoons and also cultivated in marginal lands using low technology. Under such circumstances, only increasing Minimum Support Price (MSP) of the crop will not be enough to incentivize the farmer to allocate more area under the crop. The real answer lies in increasing yield which will enable the farmer to maximize returns. Public investment for research and extension in pulse crops must therefore be given priority so that the country becomes self sufficient and the crop is available at affordable prices to the consumer.