Govt Imposes Stock Limits on Pulses to Combat Hoarding and Speculation

New Delhi: In a decisive move to curb hoarding and unscrupulous speculation, the Government of India has issued an order imposing stock limits on pulses, specifically tur and chana, to improve affordability for consumers. The order, titled “The Removal of Licensing Requirements, Stock Limits, and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2024,” comes into effect immediately.

Effective until September 30, 2024, the stock limits apply to wholesalers, retailers, big chain retailers, millers, and importers across all States and Union Territories. The prescribed stock limits are as follows:

• Wholesalers: 200 MT for each pulse individually.
• Retailers: 5 MT for each pulse individually.
• Big Chain Retailers: 5 MT at each retail outlet and 200 MT at each depot for each pulse.
• Millers: Last 3 months of production or 25% of annual installed capacity, whichever is higher.
• Importers: Imported stock must not be held beyond 45 days from the date of Customs clearance.

Entities must declare their stock positions on the Department of Consumer Affairs portal (https://fcainfoweb.nic.in/psp). If stocks exceed the prescribed limits, entities must reduce them by July 12, 2024.

The imposition of stock limits is part of a broader strategy to control the prices of essential commodities. The Department of Consumer Affairs has been closely monitoring the stock positions of pulses through its stock disclosure portal. In early April 2024, State Governments were directed to enforce mandatory stock disclosure by all stockholding entities. This directive was followed by visits to major pulses-producing states and trading hubs across the country between late April and May 10, 2024. Meetings with traders, stockists, dealers, importers, millers, and big chain retailers were held to encourage truthful stock disclosure and ensure the affordability of pulses.

In a related measure, the government reduced the import duty on desi chana by 66% from May 4, 2024, to boost domestic production. This reduction has facilitated imports and increased chana sowing in major producing countries. Reports indicate that chana production in Australia is expected to rise from 500,000 tons in 2023-24 to 1.1 million tons in 2024-25, with availability expected from October 2024.

The sowing of Kharif pulses like tur and urad is projected to increase significantly this season due to high price realization for farmers and above-normal monsoon rains predicted by the India Meteorological Department (IMD). Additionally, the import of the current year’s tur crop from East African countries is expected to commence in August 2024.

These factors are anticipated to help reduce the prices of Kharif pulses such as tur and urad in the coming months. The arrival of the new chana crop from Australia in October 2024 is expected to maintain chana availability at affordable prices for consumers.

This proactive approach by the government aims to stabilize pulse prices and ensure fair distribution, benefiting both consumers and the agricultural sector.