Govt puts stock limits on pulses by big retailers, importers

It has also directed state govts to intensify anti-hoarding operations

To prevent hoarding of pulses and check price rise, the Centre on Sunday imposed stock limits on pulses held by licenced food processors, importers, exporters as well as large departmental retailers such as Big Bazaar. It has also directed state governments to intensify anti-hoarding operations and keep a check on black-marketing and profiteering by traders.

The stock limits on holding of pulses have been in place for the last few years. Recently, while extending the stock limits on the commodity for one more year, till September 2016, the government had exempted these four categories. “To increase availability and prevent hoarding of pulses, government amended the central order under Essential Commodities Act, 1955 with immediate effect to enable imposition of stock limits on pulses sourced from imports, stocks held by exporters... stocks to be used as raw-materials by licenced food processors and stocks of large departmental retailers,” food ministry said in a statement.
 

The government has now withdrawn exemptions to stocks of pulses held by these four categories, it added. The ministry said the Cabinet secretary has also been reviewing the price situation on a daily basis. “He directed all departments to keep a close watch on prices of essential commodities, especially pulses and work in close coordination with all states to control price rise. All states have been advised to intensify anti-hoarding operations and keep in check, black marketing and profiteering by traders,” it added.

NEVER A ‘DAL’ MOMENT

• To increase availability and prevent hoarding of pulses, govt amended the central order under Essential Commodities Act, 1955, with immediate effect to enable imposition of stock limits on pulses sourced from imports, stocks held by exporters
• The prices of pulses have risen unabated in the past few months due to a fall in domestic output by about two million tonnes (mt) to 17.20 mt in 2014-15 crop year (July-June) owing to deficient monsoon
• An inter-ministerial group, headed by Finance Minister Arun Jaitley, had last week decided to create a buffer stock of pulses using the price stabilisation fund to boost supply and check prices

The prices of pulses have risen unabated in the past few months due to a fall in domestic output by about two million tonnes (mt) to 17.20 mt in 2014-15 crop year (July-June) owing to deficient monsoon and unseasonal rains. Retail prices of tur have risen by up to Rs 190 per kg in most parts of the country, from Rs 85 per kg a year ago. Similarly, urad prices rose to nearly Rs 190 per kg from Rs 100 per kg in the year-ago period.

However, Kendriya Bhandar and Mother Dairy’s Safal outlets are selling imported tur at Rs 120-130 per kg in Delhi from October 16 in order to give relief to the common man. Andhra Pradesh and Tamil Nadu have also started selling imported lentils.

The government has imported 5,000 tonnes of tur through state-owned MMTC. Tenders have been floated for import of additional 2,000 tonnes of the commodity.

Last week, the government decided to buy 40,000 tonnes (tur and urad) from farmers at market rates to create a buffer stock for controlling prices. The decision followed meeting of an inter-ministerial group, headed by Finance Minister Arun Jaitley, last week. The group had decided to create a buffer stock using the price stabilisation fund to boost supply and check prices.