Aiming to check spiralling prices of pulses, the government is likely to consider a proposal to withdraw imposition of stock limits on the essential commodity which it had imposed in September.
Aiming to check spiralling prices of pulses, the government is likely to consider a proposal to withdraw imposition of stock limits on the essential commodity which it had imposed in September.
According to sources, the Cabinet Committee on Economic Affairs (CCEA), which is scheduled to meet on Thursday evening, is likely to review the stock limit imposed on pulses.
A delegation of importers had even met Union finance minister Arun Jaitley recently, urging him to remove the stock limit.
The likely review of the decision may happen amid repeated appeals from importers that have been demanding its removal as their orders worth millions of tonnes are lying at dockyards across the country, owing to the limit imposed by the government on the storage of pulses.
Once the stock limit imposition is withdrawn, then importers will be able to order as much consignment of pulses as possible, which in turn will create availability of the commodity and help ease its prices, sources said.
The Central government had imposed the stock limit on pulses in a bid to check hoarding of pulses. It had been imposed on pulses held by licenced food processors, importers, exporters as well as large departmental retailers.
According to the government directive, these players can’t hold more than 350 tonnes of pulses in their godown.
Indian Pulses and Grains Association (IPGA) has said that there are reports about excellent harvests of pulses in Australia, Canada and other exporting countries and stocks will start arriving at Indian ports by this month and this will help ease the current situation.
However, the prices of tur dal, which has now risen to more than Rs 200 per kg, is unlikely to see a drastic fall as crop losses in some of the major crop producing countries like Myanmar and East Africa could limit the supply, the association said. India has had two consecutive monsoons with deficient rainfall, which has led to lower production of pulses.
