Centre imposes stock limit on pulses to control surging prices

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The Centre has imposed a stock limit on pulses until October 31 under the Essential Commodities Act (ECA) with immediate effect. As per the order, stock limits have been prescribed for all pulses except moong. The limits vary up to different amounts for different stakeholders like wholesalers, retailers, millers and importers.

According to data from the Union Food and Consumer Affairs Ministry, the retail prices of pulses rose by more than 20 per cent during the January-June period of this year.

Lockdown impact

During the lockdown the prices of the pulses surged fast and the upward trend is expected to continue with gradual unlocking as the restaurants, hotels and catering services open up.

As per the order, wholesalers can only stock up to 200 Metric Tonnes (MT) of pulses, given there is not be more than 100 MT of one variety. Retailers can only stock up to 5 MT, while for millers, it is either the last three months of production or 25 per cent of annual installed capacity, whichever is higher.

For importers, the stock limit will be the same as that of wholesalers for stocks held/imported prior to May 15, 2021, while for pulses imported after May 15, the stock limit applicable on wholesalers will apply after 45 days from the date of customs clearance.

Measures taken by govt

In a bid to further control the prices of pulses, the government has removed tur, urad and moong from the restricted category and has allowed free import till October 2021. It has also slashed the time taken for clearing consignments to 6.9 days from 10-11 days in the case of pulses and 3.4 days in the case of edible oils. Furthermore, India has entered into five-year MoUs with Myanmar, Malawi and Mozambique for the import of pulses. The Centre has also released buffer stock of pulses in 2020-21 to state governments by bearing the cost of milling, processing, transportation, packaging and service charge to further cool down the prices of pulses.