 "Government takes several measures to curb pulses prices")
As price of pulses has started climbing again after last October’s steep rise, the government has taken several counter-measures. These include releasing stocks from the buffer, empowering states to impose stock limits, conducting tax raids on traders in Maharashtra, and sharply increasing the margin on chickpeas futures.The Centre on Friday decided to release 10,000 tonnes of pulses, mainly tur and urad, from buffer stocks. States have been asked to release stocks available with them and they can approach the Centre for more.
The Security and Exchange Board of India has told the National Commodity and Derivatives Exchange to levy a special margin of 25 per cent (in cash) on the long side and 5 per cent (in cash) on the short side on all running and yet to be launched chana contracts from Friday. This is second action by Sebi on chana. The regulator on April 13 had imposed five per cent special and five per cent additional margin. The total margin on chana comes to 50 per cent. In October last year, Sebi had imposed virtually 100 per cent margin on chana futures.
Sebi has taken this action to control the speculative interest in chana contract, so that the price discovery does not get distorted. Our surveillance system is closely monitoring the contract to ensure market integrity, said Rajeev Agarwal, whole time member, Sebi.
The Union food and consumer affairs ministry has informed state governments to focus on the rise in pulses prices. The income tax department searched several traders across the country to unearth possible links between hoarding of pulses and the price rise. Sources said tax officials conducted searches at 22 locations in Mumbai, Delhi, Jalgaon and Indore.“Between December and March, vegetables are available cheap and the demand for pulses declines. Between April and June, vegetable supply decreases, resulting in a surge in demand for pulses. Unless supply is managed, pulses prices will continue to remain firm,” said Bimal Kothari, managing director, Pancham International, an importer of pulses.
Tur prices have moved up by Rs 50 a kg in 10 days despite the Centre procuring 50,000 tonnes as buffer. The government feels traders are hoarding again in anticipation of a weak rabi harvest due to drought in Maharashtra and Madhya Pradesh. Government agencies have imported only 15,000 tonnes of pulses so far against annual imports of 500,000 tonnes. Traders believe price will remain elevated till the new crop arrives. Government agencies have imported only 15,000 tonnes of pulses so far against annual imports of 500,000 tonnes. Traders believe price will remain elevated till the new crop arrives.
THE PULSE PLAN
Govt measures to tame price rise in pulses
The Security and Exchange Board of India has told the National Commodity and Derivatives Exchange to levy a special margin of 25 per cent (in cash) on the long side and 5 per cent (in cash) on the short side on all running and yet to be launched chana contracts from Friday. This is second action by Sebi on chana. The regulator on April 13 had imposed five per cent special and five per cent additional margin. The total margin on chana comes to 50 per cent. In October last year, Sebi had imposed virtually 100 per cent margin on chana futures.
Sebi has taken this action to control the speculative interest in chana contract, so that the price discovery does not get distorted. Our surveillance system is closely monitoring the contract to ensure market integrity, said Rajeev Agarwal, whole time member, Sebi.
The Union food and consumer affairs ministry has informed state governments to focus on the rise in pulses prices. The income tax department searched several traders across the country to unearth possible links between hoarding of pulses and the price rise. Sources said tax officials conducted searches at 22 locations in Mumbai, Delhi, Jalgaon and Indore.“Between December and March, vegetables are available cheap and the demand for pulses declines. Between April and June, vegetable supply decreases, resulting in a surge in demand for pulses. Unless supply is managed, pulses prices will continue to remain firm,” said Bimal Kothari, managing director, Pancham International, an importer of pulses.
Tur prices have moved up by Rs 50 a kg in 10 days despite the Centre procuring 50,000 tonnes as buffer. The government feels traders are hoarding again in anticipation of a weak rabi harvest due to drought in Maharashtra and Madhya Pradesh. Government agencies have imported only 15,000 tonnes of pulses so far against annual imports of 500,000 tonnes. Traders believe price will remain elevated till the new crop arrives. Government agencies have imported only 15,000 tonnes of pulses so far against annual imports of 500,000 tonnes. Traders believe price will remain elevated till the new crop arrives.
THE PULSE PLAN
Govt measures to tame price rise in pulses
- Releases stocks from the buffer
- Empowers states to impose stock limits
- Raises margins on chana futures
- Conducts tax raids on traders