 "Rajasthan relaxes pulses' stock limit; FMC might intervene")
Under pressure from the trade, the government of Rajasthan has extended pulses’ stock limit and the timeline for stockists to adhere to the new norms.
While the deadline has extended by a week to July 15, the stock limit has been revised upwards to 400 tonnes against the earlier 250 tonnes. Of the 400 tonnes, a stockist may hold up to 200 tonnes of any one of the pulses i.e. chana, tur and urad.
The revision was announced by the state's food ministry after a meeting with traders on Wednesday. An official said warehouses registered with the Warehousing Development and Regulatory Authority (WDRA) would also be covered.
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The commodity derivatives market regulator, the Forward Markets Commission (FMC), is considering whether to intervene.
“We have received no complaints from anyone. We are sure that the (central government) notification dated October 14 is enough to certify that the stock limit is not applicable on warehouses registered with WDRA. The Centre’s decision is binding on all states. Still, we are waiting for a formal complaint to react on the issue,” said a senior FMC official.
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The confusion started with a notification from the government of Rajasthan dated June 22, levying a stock limit of 250 tonnes on pulses. To be effective from July 7 till September 30, the notification does not specify that warehouses regulated by WDRA are exempt. Presumably, all warehouses within the territory of Rajasthan would come under the regulation.
FMC believes the Union ministry of consumer affairs on October 14 exempted all-WDRA registered units from stock limits under the Essential Commodities Act.
In fact, the National Commodity & Derivatives Exchange (NCDEX), which offers futures trade in chana and has around 140,000 tonnes of pulses in various warehouses managed by it, has sought clarity in the matter from the state government.
"We have written a letter to the principal secretary (of the department) on Friday and are awaiting a reply,” said Samir Shah, managing director of NCDEX. There are around 25 warehouses in Bikaner accredited by NCDEX, of which around 15 are registered with WDRA. Registration of the remaining ones are in various stages of completion.
The state government has threatened action against warehouses not adhering to stock limit guidelines within the prescribed time. The actions may include seizure of additional or whole stocks.
While the deadline has extended by a week to July 15, the stock limit has been revised upwards to 400 tonnes against the earlier 250 tonnes. Of the 400 tonnes, a stockist may hold up to 200 tonnes of any one of the pulses i.e. chana, tur and urad.
The revision was announced by the state's food ministry after a meeting with traders on Wednesday. An official said warehouses registered with the Warehousing Development and Regulatory Authority (WDRA) would also be covered.
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“We have been directed by the central government to take steps to curtail pulses' prices. Following that, we imposed stock limits. It does not make any sense to exempt WDRA warehouses from the stock limit and levy the same on private warehouses,” said the official, on condition of anonymity.
ALSO READ: Sowing area of pulses, oilseeds zooms as monsoon advances
The commodity derivatives market regulator, the Forward Markets Commission (FMC), is considering whether to intervene.
“We have received no complaints from anyone. We are sure that the (central government) notification dated October 14 is enough to certify that the stock limit is not applicable on warehouses registered with WDRA. The Centre’s decision is binding on all states. Still, we are waiting for a formal complaint to react on the issue,” said a senior FMC official.
ALSO READ: FMC okays selection panel for MCX chief
The confusion started with a notification from the government of Rajasthan dated June 22, levying a stock limit of 250 tonnes on pulses. To be effective from July 7 till September 30, the notification does not specify that warehouses regulated by WDRA are exempt. Presumably, all warehouses within the territory of Rajasthan would come under the regulation.
FMC believes the Union ministry of consumer affairs on October 14 exempted all-WDRA registered units from stock limits under the Essential Commodities Act.
In fact, the National Commodity & Derivatives Exchange (NCDEX), which offers futures trade in chana and has around 140,000 tonnes of pulses in various warehouses managed by it, has sought clarity in the matter from the state government.
"We have written a letter to the principal secretary (of the department) on Friday and are awaiting a reply,” said Samir Shah, managing director of NCDEX. There are around 25 warehouses in Bikaner accredited by NCDEX, of which around 15 are registered with WDRA. Registration of the remaining ones are in various stages of completion.
The state government has threatened action against warehouses not adhering to stock limit guidelines within the prescribed time. The actions may include seizure of additional or whole stocks.