Government has imposed a stock limit on pulses with immediate effect to cool down prices of pulses until October 31. A government order has been issued in this regard from the Union Consumer Affairs Ministry. A stock limit of 200 ton has been imposed on wholesalers on one variety of pulse. In case of millers, the stock limit is fixed at 3 months of production or 25 % of installed capacity whichever is higher.
In case of importers, the stock limit will be the same as that of wholesalers for stocks held or imported before May 15 this year. Further, for pulses imported after May 15, stock limit would be applicable after 45 days from date of custom clearance. In the case of retailers, the stock limit is fixed at 5 ton.
If the quantity is beyond the limit specified, the trade participants would have to declare the details on the Consumer Affairs Ministry website (fcainfoweb.nic.in) and bring the stock limit to the prescribed level of the category.
The decision has come when prices of most pulses in the local market have fallen and are trading near Minimum Support Price or are below it. According to government third advance estimates production of most pulses particularly, tur or pigeon peas and chana or chickpeas have been upward revised.
Food for thought –
Is the government anticipating that production in last year could be much below its estimates or is it expecting the southwest monsoon to play spoilsport this year?