Government relaxes stock-limit norms; Chana futures up over 1%

Recent efforts by the trade associations and bodies to either relax or withdraw the stock limit order has borne fruits. The stock limit order imposed by the government on July 2 has been relaxed for the wholesaler and the millers but kept unchanged for retailers.

The new norm for the stock-limit is mentioned as below-

Ø  For wholesalers,  the limit has been increased to 500 ton from 200 ton earlier subject to a condition that it cannot hold more than 200 ton of any one pulse variety at a given point of time.

Ø  Retailers can hold up to a maximum of 5 ton.

Ø  A miller could hold inventory of up to a quantity of six months of production or 50% of annual installed capacity whichever is higher.

Ø   For importer, as per notifications it does not specify the quantum of inventory to be held at a given point of time but whatever the quantity is held by the importer has to be disclosed on the portal ( Department of Consumer Affairs.

This has caused a positive impact on the market sentiments and prices in the local mandis and the futures increased. Chana August futures on the NCDEX increased and ended at 4,926 rupees, up 1.7% from Friday’s close.