 "Centre directs ED, others to recover 125,000 tonnes of illegally stored chana")
The Centre has directed the Enforcement Directorate (ED) and other authorities to conduct nationwide raid on godowns and warehouses to recover around 125,000 tonnes of chana dal (gram) illegally stored by traders on behalf of farmers, which has artificially pushed up prices in the domestic market.
Officials said the government has estimated that most of these have been stored in Madhya Pradesh and Maharashtra, where the crop is mainly grown.
The Centre is also planning to write to all states to bring down the gap between the retail and wholesale prices of pulses to 20-25 per cent in metropolitan and other big cities by whatever means possible.
At present, the difference between the retail and wholesale prices of pulses in some cities like Delhi is as high as 50 per cent, which is unusual.
By bringing down the gap between retail and wholesale prices, retail traders would be dis-incentivised to store pulses beyond a reasonable time. States have been directed to take all possible measures, including random raids and checking.
These decisions were taken at a high-level meeting of officials from the ED, income tax department, Directorate of Revenue Intelligence (DR), state police and the department of consumer affairs to keep a check on pulses prices, particularly of chana, which have shown a rising trend in the last few days.
Data from the department of consumer affairs showed that the average retail price of chana dal had gone up around Rs 20 a kg in the past one month. With prices of other pulses also ruling above Rs 100 a kg, the latest increase has threatened to further push up retail inflation, which touched a 22-month high of 5.77 per cent in June 2016 mainly due to costly food products.
Officials said the government has estimated chana, which has not come into the retail markets, has been hoarded as the future market volumes also showed a dip.
As against 135,000 tonnes of chana traded in the futures market in 2015, the volumes had slumped to just around 11,000 tonnes, which meant that contrary to popular perception, chana prices were not rising due to speculative trading in the futures markets.
“This clearly shows that traders were hoarding chana illegally in anticipation of an increase in prices. Prices won’t rise just on plain demand and supply,” the official explained.
Meanwhile, in another meeting held later during the day, top government officials also reviewed the pulses import-supply situation.
Around 19,000 tonnes of imported pulses, against the contracted 36,000 tonnes, have already arrived in Indian ports. The rest would come in three weeks. Recently, the government had signed a long-term memorandum of association with Mozambique for import of 200,000 tonnes of arhar or tur for three years.
India’s pulses production in 2015-16 was 17.7 million tonnes, while the demand was anticipated to be 24 million tonnes due to back-to-back droughts. However, with the southwest monsoon expected to be good this year, officials said production would reach around 20 million tonnes, which would ease the supply situation.
CRACKING DOWN
Officials said the government has estimated that most of these have been stored in Madhya Pradesh and Maharashtra, where the crop is mainly grown.
The Centre is also planning to write to all states to bring down the gap between the retail and wholesale prices of pulses to 20-25 per cent in metropolitan and other big cities by whatever means possible.
At present, the difference between the retail and wholesale prices of pulses in some cities like Delhi is as high as 50 per cent, which is unusual.
By bringing down the gap between retail and wholesale prices, retail traders would be dis-incentivised to store pulses beyond a reasonable time. States have been directed to take all possible measures, including random raids and checking.
These decisions were taken at a high-level meeting of officials from the ED, income tax department, Directorate of Revenue Intelligence (DR), state police and the department of consumer affairs to keep a check on pulses prices, particularly of chana, which have shown a rising trend in the last few days.
Data from the department of consumer affairs showed that the average retail price of chana dal had gone up around Rs 20 a kg in the past one month. With prices of other pulses also ruling above Rs 100 a kg, the latest increase has threatened to further push up retail inflation, which touched a 22-month high of 5.77 per cent in June 2016 mainly due to costly food products.
Officials said the government has estimated chana, which has not come into the retail markets, has been hoarded as the future market volumes also showed a dip.
As against 135,000 tonnes of chana traded in the futures market in 2015, the volumes had slumped to just around 11,000 tonnes, which meant that contrary to popular perception, chana prices were not rising due to speculative trading in the futures markets.
“This clearly shows that traders were hoarding chana illegally in anticipation of an increase in prices. Prices won’t rise just on plain demand and supply,” the official explained.
Meanwhile, in another meeting held later during the day, top government officials also reviewed the pulses import-supply situation.
Around 19,000 tonnes of imported pulses, against the contracted 36,000 tonnes, have already arrived in Indian ports. The rest would come in three weeks. Recently, the government had signed a long-term memorandum of association with Mozambique for import of 200,000 tonnes of arhar or tur for three years.
India’s pulses production in 2015-16 was 17.7 million tonnes, while the demand was anticipated to be 24 million tonnes due to back-to-back droughts. However, with the southwest monsoon expected to be good this year, officials said production would reach around 20 million tonnes, which would ease the supply situation.
CRACKING DOWN
- Around 125,000 tonnes of chana dal stored illegally
- Most storage taking place in MP, Maharashtra
- Traders hoarding the pulses in the name of farmers
- States asked to bridge the margin between retail and wholesale price of pulses to 20-25%
- Margin at 45% now
- Chana dal prices have risen Rs 20 a kg in the last one month.
- Around 19,000 tonnes of imported pulses already in the ports
- 36,000 tonnes to come in three weeks
