Steps to contain the prices of pulses
The recent rise in prices of pulses is mainly on account of shortfall in domestic production due to adverse weather conditions and increase in demand because of rise in population and per capita income and change in food habits. As speculation, cartelization, black-marketing/hoarding also put pressure on prices, domestic searches and surveys have been conducted on a number of importers, traders and financiers engaged in the pulses trade.The Government has advised States/UTs to put in place a mechanism for regular collection of data/information on stocks of pulses being held by dealers for effective implementation of Stock limits.
The Government has regularly issued advisories to States/UTs for strict enforcement of the Essential Commodities (EC) Act, 1955 and the Prevention of Black-marketing and Maintenance of Supplies of Essential Commodities (PBMMSEC) Act, 1980. States/UTs have been conducting raids and seized pulses are being disposed, as per the provisions under the EC Act, 1955.
Following steps have been taken by the Government to contain prices of pulses:
Export of all pulses is banned except kabuli channa and up to 10,000 MTs in organic pulses and lentils.
Import of pulses are allowed at zero import duty.
Stock limit on pulses extended till 30.9.2016.
Government imported 5000 MT of Tur from Malawi/Mozambique and allocated it to States for retail sale to consumers to improve availability and to moderate prices.
MSP (including bonus) raised for kharif pulses for Tur and Urad and Moong. MSP also raised for Rabi pulses for Gram and Masoor.
Government has approved creation of buffer stock of 1.5 lakh MT of pulses for effective market intervention.
Government has decided to immediately release 10,000 MT of pulses from the buffer stock (consisting of 8,000 MT of Tur and 2,000 MT of Urad) to States/UTs at subsidized rates for retailing by them at not more than Rs 120/- per kg to improve availability and stabilise prices.
Regulatory measures by Securities & Exchange Board of India (SEBI) on Chana contracts including increase in the margin requirement to discourage speculation and to moderate the price volatility in forward market and close monitoring by SEBI
Strict vigilance by Directorate of Revenue Intelligence to prevent importers from mis-using the facilities of Customs Bonded Warehouse facility
Setting up of a Group of Officers for regular monitoring and exchange of information on hoarding, cartelization etc.
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