Centre eases inventory limits on pulse traders, lifts them fully for importers


With traders and importers voicing strong opposition to the stringent inventory limit on pulses imposed earlier this month, the Centre today relaxed probably the most limits for wholesalers and retailers and lifted it totally for importers inside days of imposing them.

There was no change in inventory holding limit for retailers which has been kept at 5 metric tonnes.

Smaller pulses such as kidney beans (rajma), kabuli chana, lobia (black-red eye beans), peas and moth have also been taken out of the purview of the inventory holding limits.

As per revised order, wholesalers can now hold upto 500 tonnes of pulses given one variety must not exceed 200 metric tonnes.

In the earlier order issued on July 2, wholesalers could hold only 200 tonnes of pulses. (see chart)

That apart, millers can now hold stocks which are equivalent to their final six months of production or 50 per cent of annual installed capacity whichever is higher.

Earlier, millers could hold stocks equivalent to three months of their production or 25 percent of annual installed capacity whichever was once higher.

“The relaxation for millers will have a down-streaming effect in relation to giving an assurance to the farmers at this a very powerful juncture of kharif sowing of urad and tur,” an official observation said.

It added that because of the crackdown on pulses hoarders, in two months around 8343 registrations of stocks have been made on the official portal while stocks of around 3 million tonnes have been declared.

The official observation also said that on account of the more than a few measures initiated by the government in the previous few months, wholesale prices of all pulses except for masur have fallen by 3-4 per cent in the final two months and retail prices over the same period have fallen by 2-4 months.

Earlier, this month, Food Secretary Sudhanshu Pandey had said that pulses stocks limits have been imposed despite a cooling down of prices in the final two months as in the retail markets rates are still higher than final year.

“This is excellent news for the industry and a good decision taken by the government. The market may surge because of increasing inventory limits. But we will have to understand the government’s initiative to keep watch over prices, which is a great cause. Since this news broke on Monday, which is the opening of the week, the market may reinforce but for a limited time, as they’ve to liquidate stocks inside 30 days. Good news for Pea, Kabuli Chana, Moth, Lobia, Rajma,” said Rahul Chauhan, of iGrain India, a commodity trading and research firm.

Bimal Kothari, vice chairman of Indian Pulses and Grains Organization said that the move to chill out the inventory limits will smoothen supplies in the coming months and stabilize prices all through the forthcoming festive period.

Dear Reader,

Trade Standard has all the time strived tough to supply up-to-date information and remark on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and fixed feedback on how to reinforce our offering have only made our get to the bottom of and commitment to these ideals stronger. Even all through these difficult times arising out of Covid-19, we continue to remain dedicated to keeping you informed and up to date with credible news, authoritative views and incisive remark on topical issues of relevance.

We, then again, have a request.

As we battle the economic have an effect on of the pandemic, we need your fortify even more, in order that we will be able to continue to give you more quality satisfied. Our subscription mannequin has seen an encouraging response from many of you, who have subscribed to our online satisfied. More subscription to our online satisfied can only help us achieve the goals of offering you even better and more applicable satisfied. We consider in free, reasonable and credible journalism. Your fortify through more subscriptions can help us practise the journalism to which we are dedicated.

Reinforce quality journalism and subscribe to Trade Standard.

Digital Editor

Top stories / News / Trade


Please enter your comment!
Please enter your name here