Government lowers stock limit of pulses to prevent hoarding

The Department of Consumer Affairs is closely monitoring the stock position of tur and urad through a stock disclosure portal which has been reviewed on weekly basis with the State Government, the statement added.

Amid surge in price of pulses, the central government on Monday cut the stock limits of tur and urad by 75 per cent and extended the time period for maintaining limited stocks by another two months to December-end in order to prevent hoarding of the kitchen staple.

Stock limits for wholesalers and big chain retailers have been reduced to 50 tonnes from the earlier limit of 200 tonnes, as per a notification issued by the Ministry of Consumer Affairs, Food & Public Distribution.

The limit for miller has been reduced from last 3 months production or 25 per cent of annual capacity, whichever is higher to last 1 month production or 10 per cent of annual capacity, whichever is higher.

The period for stock limit has been extended by two months to December end. The stock limit for tur and urad was introduced in June with an objective to prevent hoarding and check price rise.

Price of pulses surged by 13.04 per cent year-on-year in August, as per the latest Consumer Price Index (CPI) inflation data released by National Statistical Office (NSO). In July, the year-on-year jump in prices of pulses stood at 34 per cent, the highest in 6 years.

“The revision in stock limits and extension of the time period is to prevent hoarding and elicit the continuous release of Tur and Urad in sufficient quantities to the market and make tur dal and urad dal available at affordable prices for the consumers,” the Ministry of Consumer Affairs, Food & Public Distribution said in
a statement.

The Department of Consumer Affairs is closely monitoring the stock position of tur and urad through a stock disclosure portal which has been reviewed on weekly basis with the State Government,
it added.

As per the latest order, stock limits have been prescribed for tur and urad until 31st December, 2023 for all States and Union Territories.

Stock limits applicable to each of the pulses individually will be 50 tonnes for wholesalers; 5 tonnes for retailers; 5 tonnes at each retail outlet and 50 tonnes at depot for big chain retailers; last 1 month of production or 10% of annual installed capacity, whichever is higher, for the millers.

As per the notification, importers would not be allowed to hold imported stock beyond 30 days from the date of Customs clearance.

The government has directed traders, millers, importers and other entities to declare their stock position on the portal of the Department of Consumer Affairs. In case the stocks held by them are higher than the prescribed limits then, they shall bring the same to the prescribed stock limits within 30 days of issue of the notification, the statement said.