Govt imposes stock limits for pulses in a bid to control rising prices

Government of India has imposed stock limits on the pulses applicable to wholesalers, retailers, big chain retailers, millers and importers, in order to prevent hoarding and unscrupulous speculation and also to improve affordability to the consumers of Tur and Urad dals. The system has come into effect from June 2^nd.

This follows skyrocketing of pulse prices in the retail market during the last one month even as Government and Reserve Bank of India have been claiming that the inflation is coming down and that the interest rates for the bank depositors will be cut. Vegetable and fruits prices have also touched all time high during the last fortnight. With the festival season nearing the government is doing fire fighting to control the prices.

The Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2023 has been issued with immediate effect from today i.e. 2^nd June 2023.

Under this order, stock limits have been prescribed for Tur and Urad Dhal until 31^st October 2023 for all States and Union Territories. Stock limits applicable to each of the pulse individually will be 200 Metric Tons for wholesalers; 5 Metric Tons for retailers; 5 Metric Tons at each retail outlet and 200 Metric Tons at depot for big chain retailers; last 3 months of production or 25 per cent of annual installed capacity, whichever is higher, for the millers.

In respect of importers, the importers are not to hold imported stock beyond 30 days from the date of Customs clearance. The respective legal entities are to declare the stock position on the portal (https://fcainfoweb.nic.in/psp) of Department of Consumer Affairs and in case the stocks held by them are higher than the prescribed limits then, they shall bring the same to the prescribed stock limits within 30 days of issue of the notification.

 The imposition of stock limits on Tur and Urad dhals is another step in the efforts taken by the Government to crackdown on prices of essential commodities. The Department of Consumer Affairs had been closely monitoring the stock position.of Tur and Urad dhal through stock disclosure portal which has been reviewed on weekly basis with the State Government.

Extensive interactions with various stakeholders such as importers, millers, retailers had been held to ensure disclosure of stocks, including visits by senior officers to the states of Karnataka, Madhya Pradesh, Maharashtra and Tamil Nadu to assess the ground situation.