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Govt imposes stock limits on pulses till October to check price rise – Business Standard

Days after the lowered the import duty on edible oils, it imposed stock holding limits on all save moong, held by wholesalers, retailers, importers and millers till October.

Incidentally, the decision has come at a time when prices of most have come off from their peaks and have softened by Rs 5-20 per kg in the retail markets the past one month, as per data from department of consumer affairs.

prices in the domestic markets had soared in the months of March to May due to low domestic stocks, prompting the to allow free imports.

However, since then prices have cooled down due to low demand and fear of imports.

“There was a sustained increase in the price of pulses in March-April. The need for an urgent policy decision was felt to send the right signal to the market,” the ministry said in a statement.

Meanwhile, as per today’s order which came into effect immediately, a stock limit of 200 tonnes has been imposed on wholesalers provided they do not hold more than 200 tonnes of one variety of pulses.

On retailers, the stock limit will be 5 tonnes.

In case of millers, the stock limit will be the last three months of production or 25 percent of annual installed capacity, whichever is higher.

Lastly, for importers, the stock limit will be the same as that of wholesalers for stocks held/imported prior to May 15, 2021.

And for pulses imported after May 15, stock limit applicable on wholesalers will apply after 45 days from date of customs clearance, the order said.

According to the ministry, if the stocks of entities exceed the prescribed limits, they have to be declared on the online portal of the Department of Consumer Affairs and have to be brought within the prescribed limit within 30 days of the notification of the order.

Meanwhile, the also said that it is enhancing the buffer stock limit under Price Stabilization Fund (PSF) to 2.3 million tonnes in FY22.

The Centre has also entered into long-term MoUs with Myanmar, Malawi and Mozambique for import of over 0.55 million tonnes of tur and urad.

“These MoUs will ensure predictability in the quantity of pulses being produced abroad and exported to India, thus benefiting both India and the pulse exporting country,” the government said.

The Center said that a SoP for faster clearance of import consignments of pulses and edible oils have been prepared, as a result of which the dwell time for clearances of consignments has come down to 6.9 days from 10 to 11 days in case of pulses and 3.4 days in case of edible oils.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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